Dream of other shores for a villa by the sea

For those who find beachfront living in S’pore costly, there are options in Bali, Phuket

(SINGAPORE) Don’t let your dream of owning a beachfront home get washed away by rising prices.

Sure, an exclusive beachfront home at Sentosa Cove will cost anywhere in the region of $15 million to $20 million these days, but there are cheaper options.

Consider that a bungalow land parcel in Sembawang went for around $200 psf at an Urban Redevelopment Authority (URA) auction this week – cheap compared to Sentosa Cove, where a bungalow site recently sold for over $1,500 psf.

Unfortunately, only one parcel out of 12 in the auction was designated for bungalow development.

To find an affordable beachfront villa, one will really have to look overseas.

The Alila Villas Tanah Lot in Bali costs just under $3 million. For this, you get a three-bedroom villa designed by award-winning Singapore firm SCDA Architects on about 6,000 sq ft of prime beachfront real estate near the fabled Tanah Lot temple.

Fu Hui Ling, whose family is in the mining business in Indonesia, is one of the partners behind the venture.

The development comprises 12 three-bedroom villas and 38 one-bedroom villas and all have been sold, mostly by word of mouth, and sight unseen.

Ads for property in Bali are easily found on the Internet but buying a property overseas does require some nerve.

An unscrupulous developer will sell you a beachfront home that could be miles from the beach, say Ms Fu. She herself was talked into buying a beachfront property that was landlocked with no access from the road.

But such occasional pitfalls aside, property values are on the rise. Since 2005, prime property prices have increased 50-60 per cent, reckons Ms Fu.

‘And nothing beats nature,’ she enthuses.

Closer to home – just across the Causeway, in fact – nature is a little less expensive.

Bayou Water Village is the latest phase of the huge Leisure Farm Resort Residences in Johor developed by Mulpha International Berhad and waterfront bungalows there cost about $500,000. That is until they were all sold too.

There are still terrace units available and these cost about $215,000. The built-up area for all three-bedroom units is 1,777 to 2,234 sq ft.

Peter Lim, sales manager at Leisure Farm, says that half the buyers of the waterfront homes are either Singaporeans or Singapore PRs. They include professionals, businessmen, and people, ‘looking for a shortcut to their dream home’.

To give an idea of the capital appreciation, Mr Lim says that its The Pinggiran Bayou cluster homes were first launched at around $100 psf about four years ago while Bayou Water Village was launched at about $150 psf last year.

There are real challenges to buying property overseas, including restrictions and taxes pertaining to foreign ownership.

Mr Lim reveals that with the implementation of the special economic zone, the Iskandar Development Region, in Johor, certain obstacles are being removed. ‘Among the slew of incentives to entice foreign direct investment into the region is the removal of the property gains tax, which immediately connotes a capital appreciation element in investing in Johor and that has translated into many more sales inquiries and purchasing activities for us,’ adds Mr Lim.

Restrictions on foreign ownership vary.

Keppel Land, which is building luxury waterfront villas in Shanghai, says that foreign buyers have to provide proof that they have resided in China for one year with employment at the point of purchase. They are also required to declare that the property is their first in the city.

A Keppel Land spokesman also said: ‘There are different taxes imposed on different property types and they also vary from city to city. In general, there is sales tax, capital gains tax, stamp duty and income tax on rental.’

Keppel Land’s Villa Riviera, which is incidentally also designed by SCDA Architects, has waterfront bungalows that start at 6.5 million yuan (S$1.26 million) and go up to 13 million yuan, ranging from about 3,500 to 6,500 sq ft in size.

The development comprises 88 units of villas and 80 units of semi-detached and terraced houses, and so far, about 20 per cent of the buyers are Singaporeans. Keppel Land added: ‘Most of them purchase for own occupation while some are for investment.’

Phuket in Thailand is also where the wealthy are going to build their beachfront homes. At present, there is no tax in Thailand on the occupation of property or ownership.

Other restrictions on ownership do apply but this has not stopped about 2,000 foreigners from buying condominiums, apartments and villas, says CB Richard Ellis (Thailand).

According to CBRE, luxury villas weigh in at under $2 million while your entry-level villa will cost around $700,000.

Some people will want to know how much domestic help will cost – after all, you don’t want to be doing laundry in your own luxury villa, do you? But then, if you have to ask, you probably can’t afford it.

Nevertheless, the good people at CBRE estimate that full-time staff such as maids, cooks, drivers and gardeners can be hired at approximately $300-$600 per person per month.

 

Source: Business Times 3 Nov 07

Toa Payoh condo site available for application under reserve list

THE Housing & Development Board has made a 99-year leasehold condo site at the corner of Lorong 2/3 Toa Payoh available for application under the reserve list.

The 1.4-hectare plot can be developed into a project of about 530 units averaging 1,200 sq ft, property consultants say.

Market watchers suggest the site could attract bids ranging from $450 to $630 per sq ft per plot ratio – a spread that reflects uncertainty after recent market dynamics.

Last week’s withdrawal of the deferred payment scheme seems to have made developers cautious, as seen on Thursday when a state tender for a 99-year condo plot behind the Icon in Tanjong Pagar attracted just two bids.

But some observers say Far East Organization could submit a bid that matches the $601 psf per plot ratio it offered in September for a 99-year condo site next to Ang Mo Kio Hub. The $601 psf ppr was a record for suburban condo land.

Knight Frank managing director Tan Tiong Cheng believes a condo on the Toa Payoh site could sell for an average price of about $900 psf at most, considering it would be pitched mostly at HDB upgraders.

That works out to a land bid of about $450 psf ppr and a breakeven cost for the project of about $800 psf.

But Sim Lian Holdings director Ken Kuik believes a new condo on the site could sell for an average price of close to $1,000 psf, going by recent launches. He was alluding to strong sales last weekend of freehold Park Natura at Bukit Batok, much further from the city, at an average price of $1,000 psf. The project is being sold on a partial deferred payment scheme.

Mr Kuik reckons the Toa Payoh site could fetch $500 to $550 psf ppr, which would result in a breakeven cost of $850 to $900 psf ppr and a selling price for the new condo of about $950-$1,000 psf.

Another developer reckons Far East, controlled by tycoon Ng Teng Fong, will at least match the $601 psf ppr it offered for the Ang Mo Kio site. ‘My gut feel is Far East could bid $620-630 psf ppr this time,’ the developer said.

‘Because of its size it can get lower construction costs and its architects are known to maximise efficiency, so even at this bid price its breakeven cost may be just above $900 psf.’

The 150,211 sq ft Toa Payoh site is flanked by Kheng Cheng School and the Singapore Federation of Chinese Clan Associations Building. It is within walking distance from Braddell MRT Station. The site has a plot ratio of 4.2.

Sites on the reserve list under the Government Land Sales Programme are launched for tender only after an application by a developer who undertakes to pay a minimum price acceptable to the state.

 

Source: Business Times 3 Nov 07

Broad-based demand for ready-built space

JTC says net allocation rises 29% q-o-q in Q3

JTC’s ready-built facilities are proving particularly popular, with net allocation up by 29 per cent quarter-onquarter to hit 75,100 sq m in the third quarter of this year.

Occupancy rates were in turn pushed up to 91 per cent from 89 per cent in the previous quarter.

JTC says: ‘Growth was broad-based, with flatted factory, stack-up factory and business park space all experiencing positive growth in net allocations.’

Commenting, Savills Singapore’s director of industrial business space Dominic Peters said demand for business park space will continue to be strong. ‘Rents could increase another 10 per cent in the next quarter to about $3.50 to $3.80 psf on average,’ he said.

Net allocation for JTC’s business park space increased 157 per cent to 1,800 sq m, with occupancy reaching 94 per cent.

Net allocation for flatted factory space was 54,000 sq m, an increase of 94 per cent over the previous quarter. The bulk of the gross allocation of flatted factory space came from the services industry, followed by general manufacturing industry and precision engineering industry.

Net allocation for stack-up factory space increased 62 per cent to 9,700 sq m.

In the same segment, net allocation in technopreneur space and standard factory space fell 88 per cent and 55 per cent respectively.

Net allocation for JTC’s prepared industrial land fell 13 per cent to 55.9 ha quarter-on-quarter.

The logistics sector share of gross allocation was up 37 per cent to 24.4 ha, with the precision engineering sector increasing 16 per cent to take 10.8 ha.

Demand for logistics space could see rents increase by 10 per cent in the next quarter, noted Mr Peters. Supply in the East is particularly tight, he added.

Net allocation for generic land remained at 22.3 ha. Local establishments formed the bulk of gross allocation of generic land at 19.1 ha (or 78 per cent). Foreign firms’ take-up of generic land increased by 11 percentage points to 5.5 ha in Q3.

Net allocation for specialised parks was 33.6 ha and accounted for 60 per cent of the total net take-up for prepared industrial land. This is a 3.4-fold increase over the 9.9 ha registered in the same period last year. Specialised parks achieved 41.6 ha in gross allocation. Of this, logistics parks contributed 43 per cent of total land take-up for specialised parks.

 

Source: Business Times 3 Nov 07

Q3 profits up at SingLand, UIC

SingLand’s net earnings 30% higher at $30.1m, UIC’s 43% up at $25.4m

SINGAPORE Land (SingLand) and its parent company United Industrial Corporation (UIC) have both reported higher third-quarter earnings.

For the three months ended Sept 30, SingLand posted a 30 per cent year- on-year increase in net profit to $30.1 million, on the back of a 27 per cent gain in revenue to $70.52 million. SingLand, a major office landlord, said rental rates and occupancy rates improved, which resulted in an $8.1 million or 20 per cent rise in gross rental income to $47.4 million.

UIC’s Q3 net earnings rose 43 per cent to $25.4 million. UIC was in the news earlier this week for having sold more than 100 units of its Park Natura condo in Bukit Batok since last weekend. Its Q3 revenue jumped 76 per cent to $134.8 million, due to higher sales of residential properties and revenue recognition on a percentage of completion basis, contribution from Pan Pacific Singapore hotel as well as higher rental income. ‘The residential property sales pertain to the One Amber, Grand Duchess at St Patrick’s and Northwood residential property developments, which have been fully sold,’ UIC said in its results statement.

Share of associates’ results increased by $1.2 million or 23 per cent to about $6.2 million for Q3, due mainly to higher contribution from The Sixth Avenue Residences and The Regency @ Tiong Bahru residential projects in which the group has interests of 35 per cent and 40 per cent respectively.

UIC said Q3 earnings per share rose to 1.8 cents from 1.3 cents in the corresponding period last year. Net asset value per share as at Sept 30, 2007, was $1.78, up one cent from Dec 31, 2006. Its shares eased four cents to close at $3.06 yesterday.

UIC’s net earnings for the first nine months of this year rose 40 per cent to $75.8 million. Revenue increased 51 per cent to $351.4 million.

SingLand’s Q3 EPS rose to 7.3 cents from 5.6 cents in the corresponding year-ago period. NAV per share stood at $7.45 as at Sept 30, 2007, down five cents from Dec 31, 2006.

For the first nine months of this year, SingLand’s net profit rose 29 per cent to $92.1 million on a 16 per cent rise in turnover to $184.5 million.

SingLand shares closed 35 cents lower at $9.35.

 

Source: Business Times 3 Nov 07

KepLand’s 2 new Viet projects make it 7 for year

Latest joint ventures involve villa and condominium developments

KEPPEL Land has entered into two separate joint ventures (JV) to build a luxury villa development and a condominium development in Vietnam. This takes the number of projects in Vietnam announced by Keppel Land this year to seven.

In a statement yesterday, Keppel Land said that the two projects in District 9 of Ho Chi Minh City will be developed in phases and that the combined investment capital is estimated at S$319.5 million.

The JVs will be done through Keppel Land’s wholly owned subsidiaries, Dattson Pte Ltd and Sophia International Pte Ltd. Its Vietnamese JV partner is An Phu Corporation.

Keppel Land said that it expects to take up 55 per cent stakes in the JV companies while An Phu will subscribe for the remaining interest.

The luxury villa development will be built on a 13-hectare site and have about 200 homes while the condominium development, on an adjacent 6.8 ha site, will have about 1,940 apartments.

In 2005, Keppel Land launched Villa Riviera, its first luxury development in Ho Chi Minh City which subsequently sold out.

Ang Wee Gee, director of regional investments at Keppel Land said: ‘We are capitalising on our hallmark quality and success with Villa Riviera which has shown that our introduction of an exclusive gated community has been very positively received.’

He added: ‘Our first mover advantage and established network in Vietnam have enabled us to build up a strong portfolio of prime properties rapidly.’

The latest developments will be near Ho Chi Minh City’s Saigon Hi-Tech Park where Intel’s US$1 billion test and assembly plant is being built.

Construction of the villas and condominiums is expected to start when planning approval is obtained, with the sales launch of the first phase slated for early 2009.

Keppel Land is also jointly developing with An Phu waterfront condominiums fronting the Saigon River in Binh Thanh District, only four kilometres away from Ho Chi Minh City’s CBD.

These latest joint ventures follow Keppel Land’s announcement to develop a 5.1-ha waterfront residential site in District 2 last month.

The soft launch of The Estella, an up-market development comprising 1,500 apartments in the popular An Phu Ward of District 2, is slated for Q4 2007.

Keppel Land’s other developments in Ho Chi Minh City include three waterfront residential developments fronting the Saigon River in Binh Thanh District, Ca Cam River in District 7 and Ca Tre River in District 2.

 

Source: Business Times 3 Nov 07

US sub-prime fallout set to linger

Jitters may further lower US interest rates, dollar value

IN TOKYO

FINANCIAL and economic fallout from the sub-prime mortgage crisis in the US will continue for a long time and will lead to further significant falls in US interest rates and in the value of the dollar, a senior global investment manager predicted in Tokyo yesterday.

He spoke at an Asian bond market conference as Tokyo stock prices slumped by more than 2 per cent following the plunge on Wall Street on Thursday.

‘After the Asian financial crisis (of 1997), it took two years for financial markets to re-establish their equilibrium, but it will take longer in the US market because housing assets are involved,’ said Douglas Hodge, Asia Pacific area managing director for global bond management company Pimco.

US interest rates are likely to go down by a further 0.5 to 0.75 percentage points over the next 12 months as the crisis continues to unfold, while the dollar will decline by a further 10-15 per cent against other major currencies, Mr Hodge told the conference, which was co-sponsored by the Asian Development Bank and by the Japanese and Thai finance ministries.

The meeting took place as the Nikkei 225 stock average declined by 352.92 points or 2.1 per cent to 16,517.48.

Bank of Japan governor Toshihiko Fukui alerted parliament to dangers, saying: ‘There could be unexpectedly large swings in financial markets. That risk has not materialised yet, but we think it is fairly big.’

Mr Hodge suggested that Asian financial markets were becoming increasingly attractive to global investors even as growing turmoil envelopes those elsewhere.

‘Macro-economic fundamentals will continue to push Asian currencies higher,’ he suggested. Economic growth in Asia and elsewhere should compensate for falls in the US, he said, adding that, ‘we are bullish on Asia’.

Thai finance minister Chalongphob Sussangkarn told the Tokyo conference that huge external capital flows into Asia were a mark of global confidence but at the same time they were complicating the task of managing exchange rates in the region.

Other experts also warned that the growth of huge official foreign exchange reserves could create financial and currency instability.

 

Source: Business Times 3 Nov 07

Case seeks greater regulation of real estate agents

THE Consumers Association of Singapore (Case) has issued a fresh call for greater regulation of property agents plying Singapore’s red-hot property market.

The call comes amid a rising number of complaints against agents in a market where fast money can be made.

Case president Yeo Guat Kwang told The Straits Times on Thursday that talks with relevant government agencies were held last month to discuss mandatory licensing for housing agents.

‘There is very little control at the moment on the behaviour of estate agents, and many users have suffered as a result,’ said Mr Yeo, an MP for Aljunied GRC, addressing property agency PropNex’s quarterly convention.

Case’s renewed calls for intervention from the authorities follow a recent media report on a property agent who allegedly tried to sell the same flat twice to different buyers.

Mr Yeo said industry regulation could involve some form of compulsory standardised tests and training before any agent is allowed to operate.

Currently, there is no compulsory qualification or licence requirement for housing agents. To operate, an agent only has to join a licensed property agency, whose licence is issued by the Inland Revenue Authority of Singapore (Iras).

At last month’s talks, Iras, the Housing Board, Case and the Institute of Estate Agents (IEA) met to discuss the need for more industry regulation.

Iras is ‘currently reviewing’ the situation, and more meetings will be held’, said Mr Yeo.

The IEA represents about 1,000 agents and aims to act for the entire industry eventually.

Two months ago, it launched a new ‘practising certificate’ for its members, aimed at boosting their credibility and giving homebuyers and sellers more confidence in the professionalism of these agents.

In a show of support for greater industry regulation, PropNex on Thursday held a ceremony in which 100 of its members pledged to abide by the IEA’s code of conduct.

‘We need to show that agents will take responsibility for their actions,’ said PropNex chief executive Mohamed Ismail.

Although becoming an IEA member is not compulsory for agents, Mr Ismail said at least 1,000 of PropNex’s 6,000-strong team will be IEA members by year-end.

Mr Yeo added: ‘For extra protection, consumers should look for agents who have practising certificates.’

The IEA has a disciplinary and mediation board that deals with disputes and can take actions like suspending or expelling a member. Such records are also sent to Iras, which issues licences, said IEA president Jeff Foo.

Complaints lodged against estate agents have almost doubled in the last two years.

Case said it received 991 complaints last year, up from 672 in 2005 and 469 in 2004.

 

Source: The Straits Times 3 Nov 07