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New supply shrinking, demand expected to rise The Business Times January 31, 2013 SINGAPORE'S office rents are set to rebound from their first annual decline in three years as new supply shrinks and more businesses expand, according to the biggest office property trust in Asia outside of Japan. Rents in the city are reaching a trough and demand may rise as the country positions itself as a regional business hub, said Lynette Leong, chief executive officer of CapitaCommercial Trust (CCT). Supply for the next three years will be about 0.8 million square feet a year, down from 1.3 million sq ft over the past two decades, she said. "Rents are poised for a recovery," Ms Leong said in Singapore on Jan 24. It's "a no-brainer that rents are not going to go down very much further so it's more when the rents will turn and to what extent", she said. Ranked by the World Bank as the easiest place to do business for a seventh year, the co

Home prices, competition for jobs, overcrowding among top worries The Straits Times January 31, 2013 MANY Singaporeans reacted with surprise - or alarm - at the 6.9 million population projected for 2030, with several wondering whether the country can cope with the 30 per cent increase. Although the swell is 17 years away, they are worried about several issues that they say they are already facing now. These include competition for jobs, cost of living, home prices and congestion, according to street interviews by The Straits Times yesterday, one day after the Government released its Population White Paper. Of the 100 people aged 15 to 73, exactly half rejected the idea of Singapore having 6.9 million people, while another 35 were unsure. Only 15 said it was a good idea. To help boost the population, more foreigners will be let in and their numbers are expected to grow from 1.49 million - as of June last year - to around 2.3 million to 2.5 million by 2030,

Targeted interventions have met with some success, investor conference told The Business Times January 31, 2013 TARGETED interventions by governments to cool heated property markets across emerging Asia have achieved some degree of success, said Monetary Authority of Singapore (MAS) managing director Ravi Menon yesterday. They allowed policymakers some freedom to experiment without relying too much on possibly counterproductive interest rate or exchange rate policies. But these interventions - such as tightening loan-to-value ratios and stamp duties - need to be put in a more structured context, he said at Citibank's 10th annual Asia-Pacific Investor Conference. "While these targeted interventions have achieved a measure of success, macroprudential policies in emerging Asia have been deployed in a relatively eclectic and even ad-hoc manner. "As these countries return to more normal times, there is a need to formalise and institutionalise the

There will be higher interest rates, large supply of homes The Business Times January 31, 2013 WATCH out for 2015. That's when home-loan borrowers face higher interest rates just as an abundant supply of newly completed units comes on the market. The Singapore economy's exposure to the property market is now at a record high level, posing greater risks to the financial system, said DBS Bank economist Irvin Seah. "Total mortgage loans as a percentage of SGD banking sector deposits has reached a new high at 30 per cent," he revealed. The previous peak was hit in 2004, when mortgages made up 28-29 per cent of deposits. "In addition, outstanding mortgage loans as a percentage of GDP rose to 44 per cent as of end-2012," he said. Estimated total home loans and gross domestic product (GDP) at end-2012 were $151 billion and $348 billion, respectively. Mortgages are an important driver of loan growth and account for about 31.2 pe

There will be higher interest rates, large supply of homes The Business Times January 31, 2013 WATCH out for 2015. That's when home-loan borrowers face higher interest rates just as an abundant supply of newly completed units comes on the market. The Singapore economy's exposure to the property market is now at a record high level, posing greater risks to the financial system, said DBS Bank economist Irvin Seah. "Total mortgage loans as a percentage of SGD banking sector deposits has reached a new high at 30 per cent," he revealed. The previous peak was hit in 2004, when mortgages made up 28-29 per cent of deposits. "In addition, outstanding mortgage loans as a percentage of GDP rose to 44 per cent as of end-2012," he said. Estimated total home loans and gross domestic product (GDP) at end-2012 were $151 billion and $348 billion, respectively. Mortgages are an important driver of loan growth and account for about 31.2 pe

Average cost of relocating staff to Singapore has increased to US$5,510 per month - 3rd highest in Asia The Straits Times January 30, 2013 THE average cost of relocating staff to Singapore has increased 2.7 per cent to average US$5,510 per month this year - third highest in Asia and eighth globally. Taking currency fluctuation into account, however, the cost of renting an apartment in Singapore in US dollars has fallen slightly, said Lee Quane, regional director, ECA International, Asia. "(In US dollars), we actually observe a small decrease in rental price. This contrasts strongly with a year ago when the US dollar was a lot weaker against the Singapore dollar," said Mr Quane, noting that in 2011, rents increased more than 15 per cent once converted into the greenback. According to data from the human resources consultancy - which uses rental prices of three-bedroom apartments in areas commonly inhabited by expatriates as the benchmark comparison -

MCL's top bid would have been even higher if not for cooling move: CEO The Straits Times January 30, 2013 A 99-year private condo plot about 450 metres from the Lakeside MRT station attracted 12 bids yesterday, in an indication that developers' interest in prime suburban sites may not have been curbed by the round of property-cooling measures unveiled this month. However, industry players and market watchers offered mixed readings of MCL Land's top bid of $651.33 per square foot per plot ratio (psf ppr), which was 3.3 per cent above the second highest bid of $630.57 psf ppr from the UOL Group. The top six bids were within a 10 per cent range. Some property consultants said MCL's bid exceeded their expectations; in November, when the site was launched, they had forecast that the winning bid would come in at up to $600 psf ppr. For one consultant at least - Jones Lang LaSalle's national director Ong Teck Hui - MCL's bid came in at the mid

Developers' appetite for land unabated despite cooling measures The Straits Times January 30, 2013 A PLUM Jurong West residential site sparked a 12-way battle among developers although the tough new property curbs seem to have kept bids from going through the roof. Experts had expected the top bid to range from $540 to $680 per sq ft per plot ratio (psf ppr) when the tender was launched last November, but that was before the cooling measures hit a few weeks ago. MCL Land submitted the top bid of $438.9 million - or $651 psf ppr - for the 99-year leasehold residential site on Jurong West Street 41. That was at the upper end of the range but MCL Land chief executive Koh Teck Chuan told The Straits Times that the measures did have a dampening effect on the bids. "Given the last few tenders, we would probably have seen bids above $700 psf ppr without the measures. Developers have taken into account the cooling measures and are taking a more measured a

Population density to rise but quality of life will be sustained, say ministers The Straits Times January 30, 2013 SINGAPORE has enough land set aside to build 700,000 more homes by 2030, when the population is projected to be in the range of 6.5 million to 6.9 million. New towns will be built in areas such as Bidadari, Tampines North and Tengah, and there will be more housing in the central region and in mature estates with pockets of land available, especially around transport hubs. All these plans will be rolled out in tandem with nurturing the environment and heritage, said the White Paper outlining Singapore's population strategy. The policy document forecasted slower but higher quality economic growth on the back of a "calibrated approach" to immigration and foreign workers, as Singapore grapples with the twin challenges of low fertility and an ageing workforce. The population is estimated to reach 6.5 million to 6.9 million by 2030 in

Projects first to have priority scheme for married couples with young kids The Straits Times January 30, 2013 THE Housing Board (HDB) is rolling out 3,346 flats in mature and non-mature estates, the first to feature a new priority scheme for married couples with young kids. The flats in the first launch of Build-To-Order (BTO) projects for the year are in Ang Mo Kio, Kallang-Whampoa, Tampines, Choa Chu Kang, Hougang and Yishun. The Government recently tweaked the rules to help families with children younger than 16, and who had not obtained a housing grant, to secure a new flat. Previously, they were grouped with newly married and engaged couples in vying for the allotment of at least 85 per cent of new flats for first-time applicants. Now, 30 per cent of the BTO flat supply and half of leftover units on offer will be reserved for families with children below 16. This amounts to at least 7,000 new flats this year, based on the projected supply of 23,000 un

Channelnewsasia.com Posted: 29 January 2013 1048 hrs SINGAPORE: HDB on Tuesday launched six new BTO projects with a total of 3,346 flats in three mature towns -- Ang Mo Kio, Kallang/Whampoa and Tampines -- and three non-mature towns -- Choa Chu Kang, Hougang and Yishun. This is the first tranche of the 23,000 BTO flats which HDB has planned for 2013. This is also the first time that married couples with children under the age of 16 will enjoy priority allocation under the new Parenthood Priority Scheme (PPS) as announced on January 21. HDB will set aside a fixed quota of 30 per cent of BTO flats for them. It is a welcome move for those with children. "The government has given us priority, so we have come to try our luck," said Mr Wee. "I think it's a good move in the right direction. We're planning another (child) anyway and I think it might benefit us in the future," said Mr Joshua Yak. But Mohamed Ashadi and his wife w

Overall price index also dipped. According to the National University of Singapore's Singapore Residential Price Index, the SRPI overall fell 0.3%. Home prices in Non-Central region went up 0.5% while those in the Central region slipped 1.3%. Prices of small units stood pat at an index value of 175.5. The National University of Singapore (NUS) Singapore Residential Price Index Series (SRPI) is a transactions-based index that tracks the month-on-month price movements of private non-landed residential properties in Singapore. Developed by a team of researchers at IRES, the SRPI provides a resource for the development of property derivatives that would help to expand the suite of financial products offered in Singapore, particularly in the context of obtaining exposure to and managing risks associated with the real estate market. It will also complement existing property information on the state of the residential market. Martin Koh | 86666 944 | R0

SINGAPORE: The government is planning to build 700,000 new homes by 2030 to meet the projected increase in population to up to 6.9 million in about 20 years. Market observers said that the key challenge is to ensure that the supply of housing and supporting infrastructure rolled out is in line with population growth. The government plans to roll out some 200,000 new homes by 2016 and it is setting aside land to build another 500,000 units till 2030. Plans are also in the pipeline to improve transport infrastructure. Eight hundred buses will be added over the next five years. And by 2030, Singapore's rail network will double to 360 kilometres from 178 kilometres currently. Experts said the government will have to carefully manage the development of facilities to ensure that they're in line with population growth. Chua Yang Liang, head of research (Southeast Asia) at Jones Lang LaSalle, said: "The crux of the issue is the speed in which the popula