Next year’s supply may even exceed this year’s record 16,000 new flats

HOME buyers could have more than 16,000 new build-to-order (BTO) flats to choose from next year if demand continues at its present pace, said National Development Minister Mah Bow Tan.

The flats will be offered in mature HDB estates such as Tampines and Pasir Ris as well as outlying housing areas.

Mr Mah told the media yesterday: ‘If demand remains at this level, we will certainly push out a new supply of HDB flats at the same level, if not higher.’

Demand is now strong and while there are signs of an economic slowdown, the momentum should continue.

‘Going forward, I can safely say that we will continue to see this growth, and therefore we are preparing for continued supply,’ added Mr Mah, who was speaking on the sidelines of his ministry’s National Day Observance Ceremony where he presented awards to staff.

‘We are confident it will be taken up. It will be at least 16,000 new flats.’

The Government has pushed up the supply of BTO flats to 16,000 this year – about 80 per cent more than for last year and likely the highest in a decade.

The HDB had gone on an intensive building drive in the boom years of the 1990s, only to stop building new flats in new towns in 2002 as it had some 17,500 unsold flats.

The increased supply now is to meet sizzling demand, as BTO projects continue to be oversubscribed and surging HDB resale prices continue to scale new highs.

Mr Mah said late last month that the supply and demand imbalance will be arrested soon by the record number of HDB flats being released this year with prices likely to stabilise in about a year or so.

He also noted yesterday that new flats will be launched in areas other than Punggol and Sengkang, where most of the existing available land is.

‘We’re now looking for pockets of land in other parts of Singapore now that we have fulfilled our promise to Punggol,’ he added.

Mr Mah said Punggol has achieved a critical mass of 21,000 to 22,000 flats, a level that can support facilities like a new shopping mall and a town centre.

The minister also said that many young couples want to live near their parents, their children’s schools or their workplaces, so there is a demand for new flats in mature estates.

These estates will not be in downtown Singapore but could be in Tampines and Pasir Ris, he said.

He said more details will be available once the land is identified and prepared.

‘Each site is chosen very carefully… We want to build close to amenities… What HDB is doing is they are now looking for all these different pieces of land,’ he added.

‘But the direction is to start to spread out the building programme into other areas.’

The HDB will also be building flats in entirely new estates.

‘One day, we’ll have to look at opening up new land, new estates… as eventually, we will run out of available land.’

But this will require a lot of preparation and is costly as the Government will have to put in brand new infrastructure and sewerage systems, he said.

Earlier this year, Mr Mah had mentioned that the Government will consider building flats in new areas such as Simpang in the north-east, along the Strait of Johor and Tengah in the west.

He reiterated yesterday that priority will continue to be given to first-time home buyers.

Second-timers can head for the resale market, though they should not rush in if they can afford to hold off.

‘If it is not so urgent, I would advise you to hold back for a while because you already have a flat to stay in… Consider holding back till the resale market stabilises,’ Mr Mah said.

When asked about the recent tweak to the project completion period for private residential sale sites from six to five years, he said that it should not affect many developers but it does give better assurance of the supply coming onstream.

‘The longer the (completion period), the more uncertain the supply projections going forward.’

Meanwhile, five teams from the National Development Ministry received awards for their projects on work such as eating well for less by choosing frozen meat as an alternative to chilled meat, assisting HDB lessees in financial difficulty and the master plan 2008 review.

Source: Straits Times, 7 Aug 2010

They may come up in established estates; no new estates to open

THE Housing & Development Board (HDB) could roll out more than 16,000 new flats across various estates next year if demand for public housing stays firm, National Development Minister Mah Bow Tan said yesterday.

Rising resale flat prices and cash premiums have prompted HDB to launch up to 16,000 new flats under the build-to-order (BTO) scheme this year. This is probably the highest number in 10 years, Mr Mah told reporters on the sidelines of his ministry’s National Day observance ceremony yesterday.

In the seven months to end-July, HDB brought more than 9,800 new BTO flats to market. And subscription rates for launches have been high.

‘If demand continues to be strong like this, we will ramp up our building programme even further for next year,’ Mr Mah said, adding that HDB is looking for land and getting plans ready.

More flats could come up in established estates such as Tampines and Jurong, beyond the newer towns of Punggol and Sengkang. Punggol has achieved a critical mass of about 21,000 to 22,000 flats, Mr Mah said. ‘Once we have achieved that, then we are able to now move into other parts of Singapore as well.’

There is still land available for development at Punggol and Sengkang, and HDB is also looking for sites in other estates, he said. But it will not open up new estates yet.

In March, Mr Mah flagged Tengah in the west and Simpang in the north-east as potential townships.

But while the government has set aside land for new estates, building them will be costly and will require a lot of work in terms of putting in roads, sewerage systems and other infrastructure, he explained.

Demand has been strong not just for public housing but also for private homes – particularly those in the mass-market segment. Earlier this week, the government cut the project completion period (PCP) for private residential sites that it sells to five years from six years to ensure a more timely supply of homes.

Mr Mah described the change as a ‘minor tweaking’ and said that it should not affect many developers. The shorter PCP gives ‘better assurance that the supply will come on stream’, he said. ‘The longer the PCP, the more uncertain the supply projections going forward.’

In his speech at the ceremony, Mr Mah said that the government will launch the Northern Explorer Park Connector Network this year. This is the third of seven loops linking parks around the island.

Five teams from various agencies under the National Development Ministry received awards from Mr Mah yesterday for various projects, such as rolling out Singapore Green Building Week.

Source: Business Times, 7 Aug 2010

It plans 680-unit project: 60% 4-room flats; 25% 3-room; the rest 5-room

SIM Lian Land, which emerged as the highest bidder for a site in Tampines designated for public housing under the Design, Build and Sell Scheme (DBSS), plans to build about 680 flats on the plot if awarded the site.

‘About 60 per cent of the units will be four-room flats, another 25 per cent will be three-room flats and the remaining 15 per cent will comprise five-room flats,’ Sim Lian Group executive director Diana Kuik told BT yesterday.

Sim Lian’s top bid of about $178.2 million works out to about $261 per square foot of potential gross floor area. The tender drew five bids.

Sim Lian’s price was about 22 per cent higher than the next highest offer of $213.62 per square foot per plot ratio (psf ppr) by Qingdao Construction (Singapore). A joint venture between Hoi Hup Realty and Sunway Developments offered about $205 psf ppr. Realty Consortium (a unit of Koh Brothers) bid $200.91 psf ppr.

The lowest offer of $110 million or $161.20 psf ppr was from Ho Lee Group.

The site will be sold on 103-year leasehold tenure inclusive of a four-year construction period.

DBSS gives developers an opportunity to design, develop, price and sell HDB flats to buyers who have to meet criteria set by the Housing & Development Board, including a monthly household income ceiling of $8,000.

The plot is next to Singapore’s first DBSS project, The Premiere@Tampines, which was also developed by Sim Lian. That is fully sold.

As for the latest DBSS plot, Sim Lian hopes to launch the project around the third quarter of next year, says Ms Kuik.

In March this year, the group clinched a 99-year leasehold condo site at Tampines Ave 1/Ave 10, facing Bedok Reservoir, at a state tender.

It plans to build a 696-unit project to be named Waterview on this plot, with the majority of units being two and three-bedroom apartments. ‘We’ll probably launch the project around Q4 this year,’ said Ms Kuik. Sim Lian paid $302 million or $421 psf ppr for the site.

Sim Lian also has available 62 units at its Clover By the Park condo in Bishan, which is still under construction. Most of these units are three and four-bedders and are priced in the high-$900 to $1,000 psf range. The 39-storey, 99-year leasehold project has a total of 616 units. It was released in June 2008.

Source: Business Times, 4 Aug 2010

Developer’s $178m offer for Tampines plot tops 4 others

SIM Lian Land has put in what is likely to be a record bid for a design, build and sell scheme (DBSS) plot amid buoyant prices in the Housing Board market.

It topped the tender for a Tampines Avenue 5 site, released under HDB’s DBSS, with a higher-than-expected bid of $178.13 million, or $261 per sq ft per plot ratio (psf ppr).

The offer was 22 per cent ahead of the second highest bid of $145.77 million, or $213.6 psf ppr, from China-based Qingdao Construction (Singapore).

In third place was joint venture Hoi Hup Realty and Sunway Developments’ $139.9 million, or $205 psf ppr.

The plot attracted five offers, and construction firm Ho Lee Group came last with its offer of $110 million, or $161 psf ppr.

According to Ngee Ann Polytechnic real estate lecturer Nicholas Mak, Sim Lian’s bid sets a new land price record for a DBSS site and breaks the previous high of $237 psf ppr set in February 2008 for a Bishan site. He had expected the tender to draw up to seven bidders with offers of between $160 and $200 psf ppr.

At $261 psf ppr, Sim Lian will have to sell three-room flats for $380,000 to $400,000, and four-room flats for $530,000 to $550,000, said Mr Mak.

Five-room units would have to be pitched at between $640,000 and $670,000.

Sim Lian executive director Diana Kuik said the developer planned to build 680 homes on the Tampines site. She said the bulk of the units – 60 per cent – will be four-room flats. Three-room flats will account for 25 per cent of the total, while five-room units will make up the remaining 15 per cent.

‘Tampines is an extremely mature estate and demand is very strong for new flats,’ said Ms Kuik.

The Tampines site has a maximum allowable gross floor area of 63,395 sq m, including 1,060 sq m for social and commercial facilities. It is adjacent to Singapore’s first DBSS project, The Premiere@Tampines, also developed by Sim Lian, which placed a bid of $82.22 million, or $113.67 psf ppr, in January 2006.

Response then was overwhelming and saw the pilot project almost five times oversubscribed. The five-room flats eventually went for $308,000 to $450,000.

Market watchers suggest Sim Lian’s aggressive bid may also be because it is better able to control costs as it has its own construction arm.

Under DBSS, private developers can design, build and sell HDB flats directly to buyers, but they have to set aside 95 per cent of the flats for first-time buyers.

Source: Straits Times, 4 Aug 2010

New covered linkways, new windows and grilles in homes possible

SOME 54,000 households in Hougang, Tampines and Pasir Ris can look forward to new amenities in their neighbourhoods with upgrading works now under way.

The improvements could include new covered linkways, car porches and upgrading of children’s playgrounds.

Residents may also get upgrades to their flats, such as new waterproofing for their bathroom floors, and new windows and grilles.

No target completion date has been given for the works but the Government has set aside an extra $550 million for the three HDB towns under the Main Upgrading, Interim Upgrading and Lift Upgrading programmes.

As long as the Government had the financial resources, it would continue to rejuvenate housing estates, said Deputy Prime Minister and adviser to Pasir Ris-Punggol GRC grassroots organisation Teo Chee Hean yesterday. He was speaking at the launch of a community roadshow in Tampines Central to cap HDB’s 50th anniversary celebrations.

Tampines, Hougang and Pasir Ris are mature towns that were developed in the 1980s and early 1990s. Together with the newer towns of Sengkang and Punggol, they are home to 197,100 flats, about 22 per cent of the total number of HDB homes in Singapore.

Some $540 million has already been spent to improve amenities for more than 67,000 households in the three towns.

Of the extra $550 million, around $263 million will go towards estates in Tampines; $180 million to Hougang and $107 million to Pasir Ris.

Mr Teo, noting how the three housing estates have transformed over the years into modern and bustling towns, said commercial and other social facilities will also be upgraded to keep up with renewed residential areas.

For example, six sites in Tampines and Hougang have benefited from HDB’s Revitalisation of Shops Scheme (ROS) to increase the vibrancy and competitiveness of shops in the heartland.

Under the scheme, HDB provides partial funding for shopkeepers to spruce up their shopfronts and carry out promotions to attract more customers. The scheme will be extended to seven more sites in the two estates.

Loyang Point shopping centre in Pasir Ris will also be revamped at the end of the year.

Long-time residents welcomed the improvements to their neighbourhoods and shopping areas.

Mr Lee Kam Mun, who has lived in Tampines Central since 1998, said residents have got a lot out of the upgrading programmes.

Said the 42-year-old terminal manager in the oil and gas industry: ‘We have a nicer outlook in the estate. You come back and feel relaxed. There are also more common areas that encourage us to meet and make friends with neighbours.’

Source: Straits Times, 26 Jul 2010

Residents will get big say in $86m scheme to spruce up facilities

ABOUT 23,000 households across 13 HDB estates islandwide will soon see improvements to their neighbourhoods, from new covered linkways and drop-off porches to new playgrounds and letter boxes.

The Housing Board yesterday announced the rejuvenation of these estates at a cost of $86.1 million under its Neighbourhood Renewal Programme (NRP).

Under the scheme, residents have a big say in determining the look and feel of their estates by giving feedback to their town councils before such plans are set in stone.

For example, Tampines residents will be given three architectural designs to choose from and provide feedback on. At least 75 per cent of residents must vote for the final design in order for work to proceed.

Tampines was one of the first sites selected for the NRP exercise. Full details of the newly selected 13 sites will be announced over the next few months, said HDB.

National Development Minister Mah Bow Tan said yesterday that the Government is committed to rejuvenating HDB estates even during times of economic uncertainty.

He noted that the number of projects selected this year is almost double the earlier batch of seven last year.

‘Since the NRP was introduced… (it has) received strong support from residents, with high support levels averaging around 89 per cent,’ said Mr Mah, who was at the launch of Tampines’ NRP exercise last night. The event features a three-day exhibition of the designs for residents.

The NRP site launched at Tampines N9 yesterday is the largest to date, involving 38 blocks at a cost of $10 million.

The winning design will be announced at the year-end and more than 3,300 households will benefit from the improvements, said HDB.

Mr Masagos Zulkifli, Senior Parliamentary Secretary for Education and Home Affairs, said yesterday that the grassroots community had worked hard to get the approval for Tampines N9.

‘I am excited about this collective exercise not because it is the biggest NRP in Singapore, but more importantly because of the extent of involvement of the residents in deciding their own future,’ said Mr Masagos, who is also chairman of the Tampines Town Council.

Prime Minister Lee Hsien Loong first announced the NRP during his National Day Rally speech in August 2007. It is part of a key HDB initiative to renew middle-aged towns such as Yishun and Tampines.

Since then, 32 sites have been selected, of which 10 have carried out public consultations. The upgrading works are fully funded by the Government with no costs borne by the residents.

Public relations consultant Ng Mei Yan, 26, who just bought a five-room flat in Tampines, said she was thrilled to see the rejuvenation plans.

‘It’s quite timely because Tampines is quite a mature town, and it’s good that we can have a say before the plans go ahead,’ she added.

Source: Straits Times, 5 Sep 2009

A CONSERVED building in Joo Chiat Road, approved for hotel use, is up for sale at $20-$22 million.

It is owned by a local investment company, says Credo Real Estate, which has been appointed to sell it.

The hotel building has a three-storey front section and a four-storey rear extension. It has 68 guest rooms and a pub, both leased by operators for total gross rent of just over $1 million.

The leasehold site of 99 years from June 1995 covers 7,629 sq ft. The total gross floor area is about 22,925 sq ft. This means the asking price works out to $872-$960 per sq ft of gross floor area.

Joo Chiat was gazetted as a conservation district in July 1993. The hotel, which is near Paya Lebar Central, is likely to benefit from an appreciation in capital value as the transformation of Paya Lebar Central materialises, says Credo Real Estate. Paya Lebar Central is one of the four growth areas in the 2008 Master Plan.

‘Prospects for the hotel industry remain strong, with visitor arrivals expected to increase because of the Formula One Grand Prix, the 2010 Youth Olympic Games and the integrated resorts,’ said Yong Choon Fah, executive director of Credo Real Estate.

‘Given the location of the property and the future development of the Joo Chiat/Paya Lebar vicinity, there is great potential for improved revenue and capital appreciation.’

The tender for the property closes on Oct 6.

Separately, the Housing and Development Board said yesterday it is withdrawing a commercial site in Tampines from the reserve list of the government land sales programme for H2 2009.

The government has decided to withdraw the site, at Tampines Concourse, because it will be affected by future infrastructure works, HDB said. The site was released under the reserve list for application in October 2007.

Source: Business Times, 2 Sep 2009

Residents eagerly await new mall’s opening, but tenants in the other two are wary of the competition

If you are a Tampines resident clamouring for ‘mall, mall, mall’ so as to enjoy greater shopping choices, you must be eagerly counting down the days to early next month.

That is when the $450 million Tampines 1 will open, with more than 170 tenants touting new brands and concepts.

It will join two other malls, Tampines Mall and Century Square, sited close to the Tampines MRT station.

In Singapore where one complaint is that too many malls pack in the same tenants, Tampines 1 is being pitched as the mall ‘for the trendy shopper seeking all things new’.

That is the battle cry from Ms Stephanie Ho, general manager of AsiaMalls Management, which owns and manages the six-storey mall.

She cites international brand names such as Japanese fashion brand Uniqlo opening its first outlet here and Esprit setting up its flagship suburban store.

Other first-time fashion labels here include local brand Click! and French apparel brand Cache Cache.

And in a nod to the great Singapore pastime of eating, there is also Manpuku, a 13,000 sq ft space that will offer food in a Japanese street setting.

Tampines has a population of more than 200,000 residents living in 52,000 HDB flats.

Many of them are excited about the new mall. Said Mr Cruz Ely, 51, an accountant: ‘There are not many shopping choices to choose from in the east. Now, with Tampines 1, we do not have to travel all the way to Orchard.’

For Ms Iris Ng, 29, an operations assistant, shopping in comfort is most important. ‘The crowd is so big in the two existing Tampines malls that I avoid the area on weekends and public holidays. Tampines 1 will help spread out the crowd.’

The Sunday Times conducted a poll of 50 people and 86 per cent feel there is enough business to support all three malls.

Said Ms Amarit Kaur, 22, a student at the Singapore Institute of Management: ‘Tampines can support three malls easily. Many students from Bedok or Paya Lebar are already flocking there to
shop.’

Tampines Mall, managed by CapitaLand, attracts about 25 million shoppers a year. Century Square, which is also managed by AsiaMalls, drew 15.6 million shoppers last year.

While most are excited about the new entrant, more than half in the poll also said they still see themselves going most often to Tampines Mall as it offers most of the things they need.
As student Alicia Tan, 17, said: ‘It has many shops that I like and I’m very used to the place.’

Tenants in Tampines Mall and Century Square are understandably wary about the new kid on the shopping block.

Ms Ang Chon Moy, 50, salesman at Cerisi, which sells children’s apparel in Tampines Mall, said: ‘We’re scared of losing customers. People are naturally excited about new things. I’m sure the
crowd here will be smaller when Tampines 1 comes up.’

Ms June Lee, 40, of Yellow Shop which sells bags, is worried too. ‘It’s already very quiet in Century Square. We’re having sales promotions but they’re meant to deal with the economic downturn, not the arrival of Tampines 1,’ she said.

AsiaMalls’ management said it will make sure the shops at Tampines 1 and Century Square are complementary.

For example, Century Square has family-oriented tenants such as department store BHG, an entire floor of home-furnishings stores and a cineplex.

Referring to the competition, a CapitaLand spokesman said: ‘Tampines Mall has established brands, such as Isetan, NTUC FairPrice, McDonald’s, Toys ‘R’ Us, Yamaha Music School and Golden Village, that cater to residents and office workers in the Tampines Regional Centre.’

‘The new mall is expected to draw more crowds, further adding to the buzz in the area,’ she added.

Source: Straits Times, 8 Mar 2009

RESIDENTS in five neighbourhoods will be the first to get improved cycling facilities under a $43 million programme to promote it as a mode of transport.

Work will begin on 6.9km of cycling tracks for Tampines residents in the second half of this year, while 7.5km of tracks will be added in Yishun from next year. Plans are also in the pipeline for tracks in Sembawang, Pasir Ris and Taman Jurong.

These will either be dedicated 2m-wide cycling tracks or, where space is restricted, the tracks will join existing pedestrian footpaths but have painted markings to clearly identify them for cyclists.

The five were chosen because they have strong support for cycling, are relatively compact and
have land available for the cycling tracks.

Senior Parliamentary Secretary (Transport) Teo Ser Luck announced these measures yesterday during the budget debate on estimates for the Transport Ministry.

He was responding to Ms Irene Ng (Tampines GRC), Madam Cynthia Phua (Aljunied GRC), Mr Wee Siew Kim (Ang Mo Kio GRC) and Mr Ang Mong Seng (Hong Kah GRC) who, while encouraged by the increasing use of bicycles, were concerned about safety and how cyclists would interact with pedestrians and other motorists.

Mr Teo, in acknowledging the competing demands for space, said the authorities had taken ‘a very careful and deliberate approach to finding that balance between the various stakeholders’.

And while there was still some way to go before Singapore could be considered a ‘cycling nation’, he outlined initiatives to move the country in that direction.

First, a scheme to allow foldable bicycles on public transport has been approved after a six-month trial.

Foldable bicycles will be allowed on buses and trains during the off-peak periods of 9.30am to 4pm and after 8pm on weekdays, and all day on weekends and public holidays.

Other initiatives include 823 additional bicycle racks at three MRT stations – Pasir Ris, Tampines and Yishun – and safety signs on popular cycling routes.

An avid cyclist, Ms Ng, said that while cyclists were now allowed to share bus lanes, they were constantly squeezed out by buses. She called for markings on bus lanes to make them ‘bike-bus lanes’.

Responding, Mr Teo said too many markings may confuse users. He suggested education and publicity as an alternative approach.

Mr Ang – who brandished a model of a bicycle, photographs and a bicycle light and bell when speaking during the debate – wanted bicycles to have licence plates so cyclists could be held responsible if they were reckless.

Mr Teo said this may not be practical or feasible to implement, and noted that bicycle-friendly cities like Paris and Amsterdam did not have such a regulation.

‘Instead, we should focus on improving cyclist and pedestrian behaviour, which is really the crux of the matter,’ he said. ‘This is why we can move only at a pace that people are reasonably comfortable with, all the while actively consulting and engaging the various groups before taking the next step.’

Source: Straits Times – 13 Feb 2009

SINGAPORE: More is going to be done to promote cycling in Singapore.

The Land Transport Authority (LTA) will spend S$43 million to design and construct dedicated cycling tracks next to pedestrian footpaths in HDB estates.

The first phase of this programme will be implemented in Tampines, Yishun, Sembawang, Pasir Ris and Taman Jurong.

Foldable bicycles will also be allowed on MRT trains and public buses during off-peak hours on weekdays and all-day on Saturdays, Sundays and public holidays, from March 15.

The scheme follows an earlier six-month trial where an average of 70 foldable bicycles were brought on board trains and two foldable bicycles on board public buses each week.

LTA said eight out of 10 train commuters and about seven out of 10 bus commuters surveyed support the initiative.

Source: Channel News Asia – 12 Feb 2009