Tender for Ten Mile Junction site attracts eight bids
By Wong Siew Ying, Channel NewsAsia | Posted: 23 February 2010 1914 hrs
SINGAPORE : The tender for a commercial-residential site at Ten Mile Junction in Choa Chu Kang has attracted eight bids.
The 1.56-hectare site is the first to be launched for tender this year under the Confirmed List of the government land sales programme.
The top bid of nearly S$164 million came from Dollar Land Singapore, a subsidiary of Lucky Realty Company.
This translates to a tendered sale price of some S$4,700 per square metre of gross floor area. And it is higher than market expectation of between S$135 million and S$150 million.
CEL Development, a subsidiary of Chip Eng Seng Corporation, put in the second highest bid at about S$148 million, followed by Sim Lian Land at about S$139 million.
The remaining bids for the site at the junction of Choa Chu Kang Road and Woodlands Road ranged from S$71 million to S$126 million.
The award of the tender will be announced at a later date pending evaluation of the bids.
In 2008, the government rejected the top bid of S$61 million for the same site as it was too low. - CNA/ms
UOL Group's full-year profit almost triples to S$424.1m
By Mok Fei Fei/Chris Howells, Channel NewsAsia | Posted: 23 February 2010 2044 hrs
SINGAPORE : Property developer UOL Group on Tuesday said that its full-year profit nearly tripled to S$424.1 million.
The good showing came on the back of a 12 per cent increase in revenue to S$1 billion.
UOL said the increase was due mainly to higher income from property development and property investments. Such earnings helped to partially offset higher finance expenses.
While there are still concerns over the pace of economic recovery in the US and the developed countries, UOL noted that the outlook for the global economy has generally improved.
As such, it expects demand in the residential property market to remain resilient.
But UOL pointed out that the huge supply of new office space will exert further pressure on rental rates.
For the hotel sector, it expects higher occupancies for its hotels, though room rates are expected to recover at a slower pace.
Meanwhile, UOL said it does not see an immediate impact on revenues from the government's recent measures to cool the residential property sector - if other more stringent measures are not introduced.
Gwee Lian Kheng, group chief executive, UOL Group, said: "Over the longer term, if you say the other restrictions or price controls ... yes it may restrict, but I do not see that it will affect (the company) in the short and medium term."
The mainboard-listed property company sold more than 1,000 residential properties in Singapore last year, up by 15 per cent from 2008. - CNA/ms
HDB committed to build sufficient, affordable housing for citizens
By Evelyn Choo, Channel NewsAsia | Posted: 22 February 2010 2049 hrs
SINGAPORE : The Housing and Development Board (HDB) is committed to providing sufficient and affordable flats to first-time Singaporean homebuyers, and it will make no distinction between indigenous and new citizens.
Senior of Minister of State for National Development, Grace Fu, said this in Parliament on Monday in reply to a question on how many new citizens rented homes, compared with those who bought properties.
Ms Fu said the government does not track the type of properties rented or owned by new citizens.
"As a policy, we do not distinguish between indigenous and new citizens. Our commitment in housing is to provide sufficient and affordable flats for first-time Singaporean homebuyers, whether new citizens or otherwise. I wish to reassure the House that HDB continues to uphold this commitment," she said. - CNA /ls
By Hoe Yeen Nie, Channel NewsAsia | Posted: 21 February 2010 2224 hrs
SINGAPORE : There may be no property bubble yet, but Prime Minister Lee Hsien Loong on Sunday said recent moves to curb speculation were necessary to avoid more drastic action later on.
Packed showrooms and fast-rising prices have become a concern for authorities, who introduced new measures on Friday to cool the property market before things got out of hand.
A Seller's Stamp Duty is imposed on all residential properties sold within one year of purchase, while loans from financial institutions are capped at 80 per cent.
At a Lunar New Year dinner at Teck Ghee in his constituency of Ang Mo Kio, Mr Lee said that while the government cannot control property prices, it can ensure prices remain affordable.
Mr Lee said: "Please take good care of it. Do not think of selling it prematurely, or making a quick buck. Because if you sell it and you can't find another house to stay or you do not have a nest egg for your old age, that is big trouble."
Mr Lee said that one's home is a long-term investment, whether as a buffer against old age, or to be passed on to one's children or grandchildren.
But this brought him to another concern - that Singaporeans are not reproducing enough.
Mr Lee noted that Singapore's low birth rate is a reflection of fundamental changes taking place across Asia.
The Total Fertility Rate fell to 1.23 last year - with the rate among Chinese Singaporeans even lower at 1.09.
In China for instance, some young adults even advertise for make-believe girlfriends and boyfriends to hold off family pressure over the Lunar New Year.
Mr Lee said: "It is amusing but it is also sad. I am relieved that I have not heard of any reports of boyfriends or girlfriends for rent in Singapore. I hope it does not happen. But I know that young people do feel some pressure."
Mr Lee added that some social pressure may be useful, but it is family support that will give young Singaporeans a nudge in the right direction. - CNA/ms
By Joanne Chan/Lynda Hong, Channel NewsAsia | Posted: 20 February 2010 2005 hrs
SINGAPORE: New measures kicked in on Saturday to curb speculation in the property market.
A Seller's Stamp Duty will be imposed on all residential properties bought on Saturday and sold within one year, while housing loans from financial institutions will be capped at 80 percent of property value.
Are they taking the buzz out of the property market? Not yet - at least not for those who are buying for the long-term.
It was business as usual at one property showroom on Saturday, as a steady stream of visitors checked out the units available.
Sales of units at the Altez condominium - located just opposite Tanjong Pagar MRT station - are moving fast.
One woman in her 30s snapped up four units - two to stay in and two to rent out.
The condominium's developer said they could still sell an entire floor of units within an hour.
Some home buyers said the reduction in the home loan limit did not make much of a difference.
Home buyer Raphael Tan said: "The banks have been very strict, anyway. So I think we will still be on track for our financing."
And those who are buying for the long-term are not worried about the new Seller's Stamp Duty.
Doris Chia, another home buyer, said: "Although it's quite pricey now, I think this is a good location and for long-term investment."
Analysts expect developers to launch more high-end properties in the first half of this year.
These properties typically sell at S$2,000 per square foot and attract buyers and investors who are less price-sensitive.
Donald Han, managing director of Cushman and Wakefield, said: "A lot of the high-end investors are typically not bound by any limitation. They don't go for maximum loan-to-value ratio. In some cases, they just go for 40 to 50% of loan-to-value ratio. In some cases, they even buy on a cash basis."
Analysts said the mood to buy won't change much as the measures are meant to flush out speculators, who make up a small percentage of the market.
Meanwhile, Senior Minister of State for National Development Grace Fu said that now is the time to introduce measures to control the private property market.
She said the authorities have been studying the property market closely and that it is best to introduce the measures before the property bubble forms.
"We would think that it may deter speculative buying and we want our investors to basically be on the more solid ground when they invest in properties. It should not deter genuine buyers who have the financial resources to hold the property."
- CNA/ir
