Govt will continue to manage increases in construction costs

Trade and Industry Minister Lim Hng Kiang has urged developers and contractors not to price in expectations of increases in costs into their tenders for projects.

Speaking to reporters on the sideline of a groundbreaking ceremony on Friday, he said that the government would continue to manage the increase in cost of steel and other materials and try to mitigate the impact of higher costs.

He said: “The construction industry contributes about 4 percent of our GDP, and the construction cost itself is a very small part of the GDP, so the impact would not be that significant. But nevertheless, we don’t want to have a situation of it being built into expectations and contractors padding their tenders with very high expectations of continued cost escalation.

“This is something that we want to avoid, so Ministry of National Development is in constant dialogue with the Singapore Contractors Association to explain to them the situation, to make sure there isn’t this situation, that they don’t create a self-fulfilling prophecy. And they don’t have expectations built into their tender process. We must have a realistic view of the situation and know the measures that the different parties are taking to mitigate it.”

Mr Lim also touched on the need to make investing in hotel developments attractive.

He cited the increase in hotel rates, adding that these will continue to go up at a measured pace, and developers can factor this into their calculations.

Mr Lim said: “They can calculate the returns. We hope they will tender sensibly for the land price and then be in a position to build the supply that we need. If you look at the basic numbers, if we are practically doubling the number of tourist arrivals, simple common sense would say that you also practically double the number of rooms.” – CNA/ch

Source : Channel NewsAsia – 31 Aug 2007

Government raises property development charges

The government is raising property development charges with effect from Saturday.

This follows the regular six-monthly review on development charge rates.

For non-landed residential use, the charge was raised by an average of 58 percent with prime areas like Cantonment Road seeing the biggest jump of 112 percent.

For commercial use, the hike is an average of 42 percent.

Market watchers say an increase was expected, but the steep hike is likely to slow down collective sales.

Margate Mansion off Meyer Road in District 15 was sold en bloc on Thursday to Soilbuild Group for S$58 million.

The developer had projected a 20 percent increase in development charge.

But based on the announced rates, the jump is estimated to be about 55 percent – or an additional $2 million.

That means about S$10 million instead of the projected S$7.8 million.

This will work out to about 2 percent of the total development cost which property consultants say is still acceptable.

Nicholas Mak, Consultancy and Research Director, Knight Frank, says: “I think the industry as a whole is expecting an increase in the DC rate but the steep increase that we just saw this evening is probably higher than what most people would have expected. In July, the government adjusted the computation rate and DC rate increased by about 40 per cent across the board.”

The average increase for non-landed residential use this time round is 58 percent.

Cantonment Road will see the sharpest hike at 112 percent followed by the Newton and River Valley at 108 percent and Anson Road at 104 percent.

Analysts attribute the jump to recent en bloc prices of properties like Oakswood Heights at Cantonment and Lincoln Lodge at Newton.

While market watchers expect the new rates to slow en bloc sales, they also note that developers might start looking at non-prime areas.

Mr Mak says: “I think that developers and sellers will have to go back and redo their sums, they’d have to factor in this new reality. Some developers may consider that some of the asking prices coupled with this increase in DC rate may make land prices a bit too expensive. Owners may have to adjust their asking price to see whether it still makes sense for them to proceed with the en bloc sales.”

Meanwhile, commercial DC rates have gone up by an average of 42 percent.

And market-watchers say this could affect plans to redevelop certain commercial buildings.

Areas seeing the highest increase (of over 100 percent) include Telok Ayer, Maxwell, Shenton, Anson and South Bridge Road. – CNA/ch

Source : Channel NewsAsia – 31 Aug 2007

CapitaLand sells 50% stake in Chevron House for over S$366m

CapitaLand has sold its entire 50 percent stake in Chevron House for over S$366 million.

When the deal is done, the property developer will book a gain of S$151 million on the investment.

Chevron House is an office building in the banking and financial district of Raffles Place.

It was formerly known as Caltex House.

CapitaLand has been taking advantage of the buoyant office property market to divest its interest in several commercial buildings.

Another of its property, Hitachi Tower, is also said to be up for sale. – CNA/ms

Source : Channel NewsAsia – 30 Aug 2007

Some home owners may ramp up en bloc sales process: experts

Home owners could scramble to secure the required number of signatures to seal their en bloc deals in the weeks ahead, according to industry watchers.

This is due to the impending changes to the collective sales legislation aimed at adding more transparency to the process.

Owners at Pacific Mansions are still working out a deal with some four to five potential buyers.

Pacific Mansions has 288 apartment units.

The new rules, which may kick in as early as October, will not apply to this development but its sales committee hopes business can be done by that time.

82 percent of residents have already agreed to proceed with the collective sale and the committee says all processes are in order.

If successful, each unit stands to pocket over S$3 million.

The sales committee feels the change in legislation is timely, but could affect the range of property available for en bloc sales.

Dick Tay, Chairman, Pacific Mansions Sales Committee, says: “In future, developments like this will be very difficult to go on en bloc because there are high number of owners in a big estate like this, and also, the process will mean that it will be a longer process for the sales committee to go through.”

With the clock ticking down to the new rules, insiders say some owners at Neptune Court are not confident they will get their deal in time.

Currently, only around 40 per cent of residents have agreed to sell, but the sales committee is not in a rush.

Still, industry players expect some negotiations to speed up in some cases.

S K Phang, Lawyer, Phang & Co, says: “They have substantial signings already, whether it is 30, 40, 50 or 60 per cent, so they will try and race towards the 80 percentile requirement before the rules come into effect.”

Nicholas Mak, Property Analyst, Knight Frank, says: “If the current sales committees in some of the en bloc sales sites…are not able to launch their collective sales tender before the deadline, they may even have to be dissolved. (Under the new rules) You have to have the Collective Sales Agreement witnessed by lawyers and consensus hurdle will be based not just on share value, but also one the floor area.”

So experts hope the authorities will consider granting exemptions for cases where 40 or 50 percent of approval has been secured.

For now, many owners are waiting for the amendments to be debated in Parliament next month.

This, they say, will provide a clearer picture of the changes to the legislation and whether there are any additional rules to abide by. – CNA/ch

Source : Channel NewsAsia – 30 Aug 2007

The en bloc balancing act

THE law on en bloc sales looks set to be beefed up, on the back of lessons learnt from the many tussles of the past year.

When the Bill to amend the Land Titles (Strata) Act was introduced yesterday in Parliament, it contained far more rules than the Ministry of Law (MinLaw) had proposed five months ago.

This, on the back of over 400 suggestions it received during public consultation in April and May. Then, the ministry called for a further round of focus group discussions with stakeholders.

The result? Not only a new balance between the interests of minority owners objecting to a sale and that of their majority neighbours — MinLaw’s stated intention from the start — but also, a step-by-step policy to govern en-bloc sale proceedings.

The current lack of regulations has led to growing complaints by residents about the conduct and validity of collective sale agreements. At Gillman Heights in Telok Blangah, for example, objections have been filed to the Strata Titles Board about how the sale is being apportioned, among others.

The new rules attempt to address this by involving owners in the important decisions of an en-bloc sale — from the formation and composition of the sale committee, to the governance of the committee’s proceedings.

One of the new “main purposes” of the 42-page Bill is to enable any subsidiary proprietor who has signed a collective sale agreement to retract his agreement to sell.

This can be done within a cooling-off period, similar to provisions for timeshare and direct sales here and property transactions elsewhere, such as in Australia.

For future en-bloc sales, owners have five days and can exercise this right only after signing the agreement the first time. In theory, this would address complaints that owners are forced to sign agreements. For example, Today has reported on such complaints at Minton Rise in Hougang.

Another requirement, devised to tackle allegations of duress or misrepresentation, is to ensure a lawyer is present when an owner signs an agreement, if done in Singapore — so that the legal terms and liabilities are explained and the latter’s doubts addressed.

Even so, the en-bloc sale committee must now list all the important elements of the agreement to owners: The reserve price, the apportionment method, the fees payable to lawyers and marketing agents, and so on.

Bernard & Rada Law Corporation associate director M Kumaran, who oversees his firm’s en-bloc cases, believes lawyers will welcome the new Act because of the clarity of the procedures.

“When you have greater room for judgment calls, there’s a greater risk all round,” said Mr Kumaran, who cited two other areas where there is greater transparency under the Act.

The first is as simple as publicising the minutes of the sale committee meetings within a certain period, while the other is as significant as regulating the mode of sale.

MinLaw has revised the Bill so that every sale launch must be by public tender or auction. While the sale committee can engage in follow-up negotiations with any bidder, a sale by private treaty must be concluded within 10 weeks of the close of the tender/auction. Otherwise, the committee must go back to the tender results or launch again.

This helps owners to know better if they are getting the best sale price, said Mr Kumaran.

In his experience, buyers prefer private treaties because it gives them more control of the bidding process. While popular developments are more competitively sold through tender, it is also not uncommon for these to be concluded via private treaty before the end of the tender, he said.

Research director Nicholas Mak of property consultancy Knight Frank believes the en-bloc process “may be lengthened” with the additional requirements to be met and with greater involvement of owners.

For example, the decision to form a sale committee and the election of its members can only be done at a general meeting of the management corporation, not on an ad-hoc basis.

The committee must bring up the appointments of the property consultant and the lawyer at a general meeting before it makes its decision. Owners can even decide to take away these decision-making powers.

MinLaw has also specified the eligibility criteria for election to the sale committee, and made clear it cannot use the funds of the management corporation for its activities.

Other feedback MinLaw has considered includes the additional consent requirement by owners. It had proposed, in addition to the threshold of 80-per-cent consent based on share value, that 80-per-cent consent by number of units also be required.

It has now amended this second requirement to 80 per cent by area, and 90 per cent if the development is less than 10 years old. This will largely apply to mixed developments with residences, offices and shops, mitigating the shift in interests from commercial owners’ to those of residents.

Source : Today – 28 Aug 2007

Easier asset division after a split

DIVORCED couples will soon find it easier to divide their matrimonial assets in a “smooth and equitable” manner, thanks to changes to the Central Provident Fund (CPF) scheme.

From Oct 1, an ex-spouse no longer has to wait for her husband to turn 55 and be eligible to withdraw his CPF. These rules, passed under the CPF (Amendment) Bill in Parliament yesterday, now allow the immediate transfer of CPF monies to the ex-spouse’s CPF account, so long as the latter is a citizen or Singapore Permanent Resident.

There is also no need for the member to set aside the prevailing minimum sum and Medisave minimum sum first before distributing the rest to his ex-spouse.

Manpower Minister Ng Eng Hen said the aim was to “facilitate the division of matrimonial assets under the Women’s Charter, provided there is no leakage from the CPF system”.

The House also approved changes to allow family members to support one another financially, including raising the top-up limit to the prevailing minimum sum. Previously, this was pegged to the individual recipient’s minimum sum level, which would have been much lower.

Another change involving divorced couples will allow for the immediate transfer of a property to the former spouse. Currently, when a member uses his CPF to buy property and a court orders the ownership to be transferred to the ex-spouse, the member must return, in cash, to the CPF account whatever amount is due to it. With the change, this is no longer necessary.

Instead, a charge will be placed on the amount of money used to buy the house, such that if the ex-spouse sells the house later, that money will be refunded to the member’s account.

And to help more Singaporeans have enough for old age, members will be allowed to transfer funds from their ordinary account to their grandparents’ retirement account, if both parties meet the top-up criteria. Previously, they could only do so using cash. Top-ups will also be allowed to spouses and siblings under-55 using CPF or cash from January.

Members of Parliament welcomed the changes, but asked for more public education measures. Agreeing that the changes were complex, Dr Ng said simple cartoons would be used to convey messages and more roadshows would be organised. He will also deliver a ministerial statement in Parliament on Sept 17.

Source : Today – 28 Aug 2007

CapitaLand buys remaining 50% stake in Eureka Office Fund

CapitaLand has acquired the remaining 50 percent stake in Eureka Office Fund for S$590.6 million.

The fund owns the commercial building known as 1 George Street and 163 strata-titled units in The Adelphi.

It also owns a 20 percent interest in Temasek Tower.

CapitaLand says the transaction is not expected to have any material impact on its net tangible assets or earnings per share for this financial year. – CNA/ch

Source : Channel NewsAsia – 28 Aug 2007

Changes to en bloc rules will benefit all players in the long run: analysts

Market watchers and analysts are still studying the impact of proposed changes to rules governing en bloc sales unveiled in Parliament on Monday.

Some say the revision will benefit property developers as it means greater clarity and certainty to their initial investment.

Owners of Neptune Court at Marine Parade are exploring an en bloc sale.

And insiders tell Channel NewsAsia, that so far, only about 40 per cent of owners are lending support to the move.

And unless they can get another 40 percent to say yes before the changes kick in, a later bid at a collective sale will have to comply with stricter rules.

S K Phang, Lawyer, Phang & Co, says: “Some people might say look hey it’s going to cumbersome, we got to comply with the new requirements, let’s quickly sign, so that may have that positive effect, so it might reach 80 per cent. So when the new rules come into effect, you’ve already reached your 80 percent and the rules don’t apply any more.”

Phang & Co is currently handling a few of such cases and a few others that have achieved the required consent.

Its lawyers say the en bloc market has already become less heated due to the increase in development charge and current volatility in the financial markets.

Industry insiders say some speculative investors who’ve paid deposits for potential en bloc units have allowed their options to purchase to lapse because they no longer see the potential to cash in on the en bloc frenzy.

According to some analysts, the proposed changes to rules governing en bloc sales will indirectly benefit developers or buyers.

This is because they can be more sure of the deal going through, once it is inked.

But they say it’s unlikely to affect the pricing or demand for future deals.

Nicholas Mak, Consultancy & Research Director, Knight Frank, says: “The demand for en bloc sales sites is actually a derived demand. It depends on developers’ sale of their projects, redeveloped projects. If the sales of developers’ projects are going well, developers will need to replenish their landbank, there by increasing the demand for en bloc sales. So, I think that the amendment is not likely to affect the demand but rather the market on the whole. The property market on the whole will be a greater determinant of the demand for en bloc sales.”

Others believe once the market has adjusted to the new rules, it will be positive for all parties in the long term. – CNA/ch

Source : Channel NewsAsia – 28 Aug 2007

Reflections at Keppel Bay

The Daniel Libeskind showcase

Daniel Libeskind’s first residential showcase in Asia has its platform in Singapore in Keppel Bay. His iconic design for Reflections at Keppel Bay will put Singapore on the world map for luxury waterfront homes.

Reflections at Keppel Bay comprises a total of 1,129 luxurious waterfront condominium units housed in six glass towers of 24 storeys and 41 storeys as well as 11 blocks of 6- to 8-storey villa blocks. It offers choice units of 1- to 4-bedroom apartments and penthouses with sizes ranging from 700 sqft to a super penthouse of 13,300 sqft. The Libeskind development will sit on a land size of approximately 84,000 sqm with an extensive shoreline of 750 m.

The towers will all be topped with sky gardens on sloping roof lines. Sky bridges will connect each pair of towers, providing pockets of open spaces high above the ground and platforms for appreciating the panoramic views of the sea and the lush surroundings.

This iconic development will feature a sculpture-like clubhouse with a full range of recreational facilities to meet the lifestyle of discerning homeowners. Every detail and aspect of design will optimise interaction with the sea and the commanding views of its scenic surrounds including Mount Faber, Keppel Club Golf Course, Labrador Park, Sentosa Island and its upcoming integrated resort, and the city skyline.

Homeowners of this exclusive development will enjoy a 10-year complimentary membership to the 170-berth Marina at Keppel Bay when it is completed and opened in December 2007. Located on Keppel Island and linked to the mainland by a landmark cable-stayed bridge that will be completed in mid-2007, Marina at Keppel Bay will be able to accommodate yachts of between 100 and 200 ft long.

Members will enjoy lifestyle facilities that include a clubhouse with a member’s lounge, gourmet restaurants, recreational amenities and leisure charter services to access neighbouring islands.

Location: Keppel Bay (District 4)
Tenure: 99-year leasehold
Year of Completion: 2012
Total Units: 1,129
Development: 6 tower blocks (combination of 41/24 storeys) and 11 low rise villas (combination of 6/7/8 storeys)

Unit Types:
1BR + study ~ 732 to 800 sqft (6 units)
2BR & 2BR + study ~ 743 to 1,001 sqft & 947 to 1,335 sqft (398 units)
3BR ~ 1,109 to 2,142 sqft (589 units)
4BR & 4BR + study ~ 1,938 to 2,831 sqft & 2,530 to 2,874 sqft (132 units)
Penthouse ~ 3,488 to 12,900 sqft (35 units)

Facilities:
Double storey clubhouse
Landscaped sky bridges
Gymnasium
Full-length Olympic pool, children’s pool, Jacuzzi, lap pool
Two tennis courts
Water features including a 100,000 sq ft reflecting pool

Signature waterfront living in Keppel Bay to attract world luxury home collectors

Home-grown multi-national corporation, Keppel Corporation, through property arm, Keppel Land, continues to contribute to shaping Singapore’s skyline and fabric of city living in Singapore’s next phase of growth.

Keppel Bay is set to put Singapore on the world’s prime real estate map as a true waterfront precinct comprising an iconic residential development designed by world renowned architect, Daniel Libeskind; the FIABCI-award winning condominium, Caribbean at Keppel Bay; a world-class marina, Marina@Keppel Bay; and the new landmark cable-stayed bridge linking the mainland to the marina.

Located just a five-minute drive away from the Central Business District, Keppel Bay is part of the vibrant waterfront city in southern Singapore comprising Sentosa and the upcoming Sentosa Integrated Resort, Harbourfront and VivoCity, Singapore’s largest entertainment and recreation hub.

Keppel Bay enjoys the rare confluence of location strengths – of being near the city yet within one of Singapore’s best-loved nature and recreation enclaves.  Combining the best in waterfront and urban lifestyles, Keppel Bay redefines premier waterfront living befitting Singapore’s position as a vibrant global city.

Contact us at info@lushhomemedia.com or +65 9631 8037 with the following for more information:

Reflections / Name / Contact # / Unit Type Interested

Grange Residences @ Grange Road

Grange Residences occupies a prime location in the residential heart of Singapore, at the junction of Tanglin Road and Grange Road – two of the most desirable residential address in the city. There is also the added benefit of being just a short walk from the magnificent Botanic Gardens and the myriad attractions of Orchard Road.

Grange Residences remains a special and remarkably private address, enhancing the experience of living in an exclusive neighbourhood. Spreading over 167,000 square feet of land, Grange Residences provides a liberating sense of space and light that spans over spectacular views of both the city and greenery.

Grange Residences is one of Singapore best condominium development with a luxurious design, both on the interiors and exteriors. Its impeccable design and clean lines is a prominent landmark in the Tanglin Road vicinity. Its location makes it a preferred choice by many buyers and expats who enjoy a short walk to the Tanglin Mall, Tanglin Post Office or Botanic Gardens. Consisting of two 18-storeys and an 8 storey block, all units in this condominium have high ceilings, private lift lobbies and a good sized balcony.

Location: 91, 93, 95 Grange Road (District 10)
Developer: Wheelock Properties Ltd
Tenure: Freehold
Year of Completion: 2004
Total Units: 164 in 2 towers of 18-storey and 1 tower of 8-storey
Unit Types: 4 + 1 bedrooms – 2486, 2583, 2669, 2852 sqft

Facilities:
State-of-the-art gym
Lush landscaped gardens
Two outdoor glass pavilions
40-metre lap pool
Play pool
Children’s play area
Tennis court

Features:
High ceiling foyer at the entrance of each tower
Private lift lobby in each tower
Separate European and Asian kitchens
Leicht kitchen system
Gaggenau hobs and hoods, dishwasher, microwave oven and multifunction oven
Amana refrigerator
Transtherm wine cooler
Designer brands in bathrooms: Philippe Starck Edition 2; Villeroy and Boch

The distinctive style of Grange Residences is accentuated within each home by clean, linear interior architecture. Coupled with well-planned layouts and top-of-the-line home fittings, the home itself becomes a work of modern art.

Representing timeless modernity, Grange Residences possesses a design that is destined to make an arresting and articulate visual statement in one of the most covet residential districts of Singapore.

Contact us at info@lushhomemedia.com or +65 9631 8037 more information or viewing appointment.