Katong Mall Rejuvenation Coming Soon

Tuan Sing which bought Katong Mall enbloc for $219m in July 2008 has sold it to Perennial Katong Retail Trust for $247.55m in November 2009.

Mr Pua Seck Guan, former executive of CapitaLand, set up the private trust. The investors are no more than six parties, including corporate and institutional investors and Mr Pua.

The seven-storey centre, in a fairly affluent neighbourhood at the junction of East Coast and Joo Chiat roads, will undergo a $55 million revamp lasting 12 to 15 months.

This will transform it into a lifestyle and food and beverage hub, said Mr Pua, who was chief executive of CapitaLand Retail before stepping down a year ago.

'After pumping in the upgrading cost, the returns can be attractive,' he said, adding that the expected net property yield after completion will be about 6 per cent to 8 per cent.

Its gross floor area will be relatively unchanged at 282,000 sq ft after redevelopment works.
But its net lettable area will rise from 172,170 sq ft to over 206,000 sq ft, said a statement from Perennial Real Estate.

The revamp will add 99 more carpark spaces to make a total of 278. These will be on basements two and three. About 30,000 sq ft of retail space on basement two will then be relocated to more prime areas on the upper floors as well as a newly created fifth floor - now the rooftop.

A cinema will occupy the top floor, while anchor tenants will include a food court and gourmet supermarket, said the statement. The mall is likely to close around the middle of next year for renovation works.

Punggol Waterfront Housing Design Unveiled

• On 11 November 2009, the government announced the winning design for Punggol Waterfront Housing Design Competition launched in 2008.

• Group8asia, an international architectural firm; in partnership with local design firm Aedas, has emerged as the winner of the design competition.

• The winning design comprise sky terrace concepts, with spaces for roof gardens. The design enabled a large proportion of units to enjoy scenic views of the waterway. Other winning attributes include a resort-like design, functional and workable layout of site, and visually pleasant and refreshing housing forms that could be replicated along the waterway.

• This award-winning development is estimated to be launched in mid-2010 where 1,200 HDB units will be put up for sale and residents can experience an eco-friendly housing experience by the waterway. The resort-style housing leverages on the attractions of the waterway and the promenade.

Redevelopment of Bedok Bus Interchange

click on image for enlarge view

On 6 November 2009, the Minsitry of National Development (MND) announced the Government Land Sales (GLS) Programme for private residential, commercial and hotel developments for the first half of 2010.

A total of 8 private residential sites were placed under the Confirmed List and another 34 private residential/commercial/hotel sites were placed under the Reserve List.

One of the interesting sites is the piece of land which the current Bedok Interchange sits on. It is placed under the Reserve List and will be available in December 2009. The site is slated for a mixed residential cum commercial development. I suspect it will also has to be integrated with a bus interchange (just like the ones in Clementi, Sengkang etc).

Finally, there are concrete plans to revamp the "outdated" Bedok Town Centre. I really hope a developer will quickly trigger this site for tender once it is available in December 2009.

Overview of Punggol New Town & HDB Flat Prices

click on picture to enlarge view

Punggol New Town Demographics

As at 31 March 2008, HDB has completed 16,734 flats in Punggol.

By 2011, another 4,000 flats are expected to be completed.

HDB’s projected ultimate number of dweliing units, including private and public housing in Punggol Town is 96,000 in Year X. This is equivalent to twice the number of dwelling units Ang Mo Kio Town has as at 31 March 2008.

Punggol 21 Plus

Sequence of Events

Aug 1996

Prime Minister Goh Chok Tong in his National Day Rally announced plans for “Punggol 21”. The plan was to develop Punggol into a model waterfront town, serviced by an intricate transportation network system comprising a bus interchange as well as a Mass Rapid Transit (MRT) station (Punggol MRT station). The MRT station would in turn be linked to Light Rail Transit (LRT) stations dispersed around the town, ensuring that every home would be no more than 300 metres to the nearest LRT station. The plan was, however, halted with the onset of the Asian economic crisis of 1997. Construction began the following year, but stopped as the demand for flats declined rapidly. The undertaking to create a resort-style estate in Punggol was further impeded by financial difficulties in the construction industry in 2003.

Aug 2007

Prime Minister Lee Hsien Loong in his National Day Rally speech articulated a new vision for Punggol, naming it "Punggol 21-plus". Putting the original "Punggol 21" plan back on track, this latest model would transform the existing Punggol estate into a waterfront town featuring amenities ranging from jogging tracks to restaurants offering alfresco dining. In addition, the Punggol and Serangoon rivers would be dammed up to form a freshwater lake.

Sep 2007

Key strategies for “Punggol 21 Plus” unveiled. Minister of State for National Development, Grace Fu, says the masterplan, announced recently, will take time to study and develop. It is a long-term plan and is thus not expected to be completed in the next five years (Source: Channelnewsasia).

Nov 2007

URA unveiled design proposals for a new waterfront promenade and park at Punggol Point. A 4.9 kilometre promenade will be built to connect two proposed sports and recreational clusters at Punggol Point and along Sungei Serangoon. The promenade will also be linked to new park connectors planned by NParks along Sungei Punggol and Sungei Serangoon.

Dec 2008

Blueprint of winning design for New Punggol Waterway unveiled. There will be a 10km cycling trail in a rustic setting along the 4.2km waterway and a pedestrian 'kelong-like' bridge to recapture the old fishing days.

Jan 2009

HDB awarded a $144.6 million contract to build the first part of Punggol Waterway to Koh Brothers.

Feb 2009

Budget Debate – Minister Mah Bow Tan indicated that the first sale site for a mixed commercial cum residential development at the town centre will be launched by 2011.

April 2009

Groundbreaking ceremony of the new Punggol Waterway. An estimated 21,000 units of private and public housing are expected to be built beside the 4.2km waterway. The project is expected to be completed by end of 2010.

Mortgage Loan Evaluation Model

Buying a property is one of the major decisions in life for many Singaporeans.

To me, taking up a mortgage loan with the right "elements" is just as important.

The level of interest rates (i.e. housing loan package) is often regarded as the most important push factor when deciding which loan package to take up.

However, a property owner may also end up paying much more in interest payments if he does not carefully consider the right parameters (loan amount, loan tenure etc) in his mortgage loan.

I have recently created a Microsoft Excel based "Mortgage Loan Evaluation Model" to facilitate a potential borrower in choosing a suitable mortgage loan package (with the right parameters) for himself.

For those who happen to read this posting and are interested in using this program please send an email request to me (Note: use the file/program at your own risk).

I hope the program would be useful and I would appreciate if you could provide me with your comments after using it.

ECs gain appeal as HDB, private home price gap widens

THE rising property market has brought executive condominiums (ECs) back from the brink of extinction.

These homes - which are halfway between public housing and private condominiums - suddenly looked much more appealing after rules for buyers wererelaxed on Tuesday.

Property consultants now expect that more plots for ECs, such as the 2.27ha site placed on the market on Tuesday, will soon be offered.

The main reason: the widening gap between prices of resale Housing Board flats and those of private condos. ECs, which come with condo facilities but with sale restrictions similar to those for public housing, were introduced in 1995 to bridge this gap.

They became relatively unpopular, however, after the property market plunged a few yearslater, making private condos more affordable.

In fact, when the first few ECs hit the resale market in 2004 after the minimum five-year occupation period, many were sold at a loss or at breakeven prices. This was because they were booked when prices were at their peak in 1996.

Many people expected Far East Organization's La Casa in Woodlands to be the last EC project on the market when it was launched for sale in 2005.

'Mass market condo prices were in the doldrums, making ECs redundant. Today, that's a different story,' said Colliers International's director of research and consultancy, Ms Tay Huey Ying.

Private home prices surged 22.9 per cent in the first nine months of the year - more than twice the rate achieved by resale HDB flats.

Lower-priced ECs are more attractive now because prices of condos in the suburbs - where ECs tend to be sited - have started to move up significantly. In the July- September period, prices of non-landed homes outside the central region rose 7.9 per cent. Consultants expect this growth to continue.

The easing of EC rules is also expected to increase demand from people looking to move from HDB flats. The HDB removed a hurdle for upgraders by scrapping a resale levy payable by EC buyers who had previously bought government-subsidised flats.

Buyers of new EC units are also no longer barred from buying second new EC units or new flats. In addition, the HDB now requires developers to reserve 90 per cent of units for first-time buyers in the first month of sale.

Although ECs still cannot be sold within the first five years and remain out of bounds to foreigners within the first 10 years, the easing of rules has helped ECs shake off their tag as second-rate condos, said Mr Eric Cheng, the executive director of the HSR property group.

Potential buyers include property agent Lester Tan, 27, who has been living with his parents for the past five years since he got married.

He and his wife started looking for a condo about two years ago, but regretted waiting so long to buy one, as prices have shot up.

He said: 'We heard that the Punggol EC may be launched, and we are quite excited about it.'

Potential upgraders like Ms Elsie Cheng, 31, are also eyeing the future EC in Punggol. The teacher - who lives with her husband, seven-month-old son and maid in a two-bedroom EC unit in Tampines - is looking to move into a bigger EC.

'Why pay so much for a private condo?' she asked.

Knight Frank's head of research and consultancy, Mr Nicholas Mak, said the changes were likely to raise the proportion of upgraders among EC buyers, from an estimated 5 per cent to 10 per cent, to 20 per cent to 25 per cent.

Developers such as Frasers Centrepoint Homes, which built the Lilydale and Quintet ECs, are optimistic. Its chief operating officer, Mr Cheang Kok Kheong, told The Straits Times: 'The EC will do well in today's market as a hybrid property - apartments with condo facilities but without private condo price tags.'
He added: 'As a reflection of the strong confidence and growth potential of the EC market, we expect to see increased competition in this market segment and more developers taking part in upcoming EC land tenders.'

Buyers hoping to make a quick buck from ECs, however, should take heed. 'The (full) value of the EC will not be realised immediately but in 10 years, subject to the property market being buoyant at that time,' said PropNex chief executive Mohamed Ismail.

For now, all eyes are on the EC site in Punggol Field. Estimated to be able to fit about 620 homes, it will be put up for tender once a developer commits to a minimum bid that meets the Government's reserve price.

The EC units, however, will meet only a small portion of the current demand for new homes. In a recent HDB sales exercise, almost 8,000 families applied for just 400 flats in Telok Blangah, while more than 1,600 applied for 516 homes in Punggol.

Growing interest
The HDB has removed a hurdle for upgraders by scrapping a resale levy that executive condo (EC) buyers who already own HDB flats have to pay.

ECs bridge the price gap between HDB flats and private homes. Private home prices rose 22.9 per cent in the first nine months of the year - more than twice the rate achieved by HDB flats.

ECs are more attractive now because prices of condos in the suburbs - where they tend to be sited - have started to move up significantly.

Gardens and sea to frame new Marina South homes

A landmark residential district - with lush gardens by its side, a spectacular view of the sea and the Sands Integrated Resort a mere stone's throw away - will rise over the next few years to add further gloss to the Marina Bay area.

Some 60 hectares of land, on which 11,000 homes will be built, has been set aside for the project. The Marina South Residential District (MSRD) will also have 1.6 million sq ft set aside for hotel use, another 678,000 sq ft of commercial space and even a primary and a secondary school. There will also be community facilities for all to enjoy, the government announced yesterday.

The entire project will be developed over a 15 to 20-year period once the supporting infrastructure has been put in place, said the Urban Redevelopment Authority (URA).

URA also said given the size of the area, it is likely that the land parcels will be released in phases.

The government agency is master planning the project as the next stage of development for the Marina Bay area.

Marina Bay, which is touted as the centrepiece of Singapore's urban transformation into a vibrant, global city, is already home to several upcoming prime projects - including the Marina Bay Sands Integrated Resort and the 100-ha Gardens By the Bay.

This residential site is located between the upcoming Garden at Marina South and the Straits of Singapore.

URA hopes that MSRD will offer its residents the best of both worlds - a rare opportunity to experience waterfront living together with the lush greenery provided by the garden.

'Obviously, it is a choice location - right between the garden and the sea,' said Knight Frank managing director Tan Tiong Cheng. 'The view will be even better than that from the Marina Bay integrated resort.'

Said Colliers International's director for research and consultancy Tay Huey Ying: 'The area will provide a very wholesome residential environment.'

The bid to develop MSRD is in line with the government's 2001 Concept Plan - a long term plan that guides Singapore's development over the next 40 to 50 years - which called for more city living options for Singaporeans.

Then, URA said that those who like the downtown buzz can look forward to having 90,000 more units to choose from, mostly in the New Downtown at Marina South.

Experts expect that homes in MSRD will be popular, especially with foreigners.

'It is possible that the primary and secondary schools could be foreign schools,' said Colin Tan, Chesterton International's head of research and consultancy.

However, market watchers mostly said that even when boosted by this latest news, home prices in the Marina Bay area are not likely to reach those fetched by luxury projects in the Orchard Road vicinity anytime soon.

'I don't think the development will overtake Orchard Road in terms of prices and appeal to foreigners,' said Ms Tay. Facilities catering to foreign residents, such as foreign schools and embassies, are now located in the Orchard Road vicinity, she said.

Knight Frank's Mr Tan agreed: 'At the end of the day, Marina South is a new district; it is not tested.'

In addition, concerns exist about the infrastructure in the area. For one, the road network in the Marina Bay area will have to be improved, analysts said.

Right now, URA is looking to garner new and innovative ideas to distinguish MSRD.

Together with the Singapore Institute of Architects, it is organising a competition, which will close on November 12, for design ideas for the district. A sum of $50,000 has been set aside to be awarded for up to 10 best ideas.

En bloc law to change in early October 2007

The current statute that governs en bloc sale will be made more transparent and fairer for the various stakeholders. Among the proposed changes to take place in early October include:

Sales committees must be properly formed and elected.

The signing of Collective sales agreements (CSAs) will be witnessed by lawyers who can clarify doubts and explain terms and liabilities.

Cooling-off period

Potential sellers will have a five-day 'cooling-off period' after they have signed the CSA.

Majority consent to include area of development

The definition of majority consent has been changed to mean 80% of share value as well as 80% of the areas of the development. Currently majority consent means 80% or 90% of the project’s share value, depending on whether it is more than 10 years old or less. In the new rule, the first condition still applies but now a second condition is required which include 80% or 90% of the area of the development, again depending on whether the project is more than 10 years old or less.

Requirements for general meetings.

A sales committee will have to be elected by more than 50% of owners present at a general meeting of the management corporation before signing of the CSA may begin. Likewise, property consultant and lawyer will have to be appointed at a general meeting. Key issues such as apportionment of sales proceeds and the terms and conditions of the CSA will also need to be discussed and formalised during general meetings.

Monthly updates by Sale Committee

The sales committee will also have to provide monthly, instead of bi-monthly updates of the consent level to keep all owners in the loop.

Requirement of tender or auction

Every launch for sale must be through a public tender or auction which means that the majority consent would have been obtained prior to that. The sales committee can engage in follow-up negotiations with any bidder, when the tender/auction fails to attract the reserved price. But a sale by private treaty must be concluded within 10 weeks of the close of the tender/auction. Otherwise, the tender will have to be relaunched for sales efforts to resume.

Market Reaction to proposed changes

As it is, many potential en bloc projects may speed up the signing of CSA to avoid doing everything all over again when the new law comes into effect. But in the longer term, there may be fewer en bloc sale sites as it would take a longer time to launch a site for sale unless the market is booming.

Lawyers' fees for collective sales, usually $3,000 to $4,000 per unit, could double or triple because of the additional duties thrust on lawyers. The lawyers will be required to witness signatures and certify the monthly updates on the consent level. The whole process of requiring lawyers to witness signatures will slow down the speed of putting en bloc sale sites onto the market.

Some Katong commercial properties up for collective sale

FACED with flagging businesses and dwindling human traffic, the shop owners of several commercial buildings in Katong are coming together to sell their properties en bloc.
This has led to renewed interest in the old East Coast hotspot recently, sparking hopes among residents and shopkeepers nearby that the area - famed for its good food and old-world charm - will get the rejuvenation it needs to boost its image.

At least five commercial buildings along Mountbatten Road and East Coast Road have appointed marketing agents to launch collective sales.

These include Katong Mall, Paramount Hotel and Shopping Centre, Roxy Square, Katong Plaza and the iconic Katong Shopping Centre, said Mr Lui Seng Fatt, the regional director and head of investments at Jones Lang LaSalle.

Back in its heyday, Katong Shopping Centre was the heart and soul of the East. But as the years wore on, the lack of entertainment facilities and an attractive retail mix made it a poor rival to other malls nearby such as Parkway Parade.

Many of these buildings in Katong are more than 20 years old and, in the case of Katong Shopping Centre, which opened in 1973, more than 30.

Dr Lim Un Huat, owner of several shops at Katong Mall, told The Straits Times most shop owners were in favour of the en bloc sales, and were waiting for the right price to sell.

Mr Lui said the 'tired-looking' buildings were overdue for a revamp, especially since residential projects in the area have gone upmarket.

Singapore Sports Hub

The Sports Hub will be Singapore's premier land and sea sports, entertainment and lifestyle hub with integrated programming. A unique cluster development of integrated world-class sports facilities within the city, it will play a critical role in accelerating the development of sports industry, excellence and participation and take sports to the next level in Singapore.The Sports Hub neatly captures all three components in one masterstroke. It will draw international events to its world-class facilities, and offer events management enterprises some of the largest potential crowds ever to assemble in Singapore. It will encourage large numbers of people to adopt and pursue sports and make sports part of their life. And it will offer exceptionally compelling opportunities for sports-related enterprises, federations, and organizations to bring their message to an enormous, interested audience.Construction and management of this development are to be handled under the public-private partnership (PPP) model. Proposals by the three pre-qualified consortiums are currently being evaluated, and the successful consortium is expected to be announced in December 2007. The facilities to be built are as follows:Located on a 35ha site in Kallang, the Sports Hub will include the following facilities:

A new 55,000-capacity National Stadium with a retractable roof;
A 6,000-capacity indoor Aquatic Centre that meets world tournament standards;
A 3,000-capacity multi-purpose arena which will be scalable and flexible in layout;
41,000 sq m of commercial space
A Water Sports Centre
The existing 12,000-capacity Singapore Indoor Stadium; and
Supporting leisure and commercial developments

The Sports Hub is well connected to the Mass Rapid Transit network, major expressways and is only 15 minutes from the Singapore Changi International airport. A new Stadium MRT station will be operational when the Hub construction is completed. From Day One, fans will have low-cost, hassle-free access to the Sports Hub.The Sports Hub is also located next to the Marina Bay area and is poised to ride on the wave of exciting developments at Marina Bay like the Marina Bay Sands Integrated Resort, Marina Barage, Singapore Flyer and the floating platform at Marina Bay. The Hub is the first and largest sports facilities infrastructure Public-Private-Partnership (PPP) projects in the world. It is also Singapore's largest and flagship PPP project of this nature.While the Sports Hub is under construction, the new floating stage at Marina Bay will host sporting and other events. Literally floating on the water, the stage will bring some of the highest-profile international events ever to grace Asia, while at the same time remaining available to showcase exceptional local talent and regional competitions. These activities form the key lead up programmes towards a successful start of the Sports Hub in 2011.

COMMENTS

Personally I forsee property prices in Tanjong Rhu area to keep on rising in the next 5 years as the area is in proximity to (1) new Sports Hub, (2) new Stadium MRT station,
(3) new retail mall (former Kallang Leisure Mall), (4) Suntec & Marina area, and (5) CBD.

Pebble Bay at Tanjong Rhu

Desired Condominiums In The East (1) - Pebble Bay @ Tanjong Rhu

Tenure: 99 years leasehold
No. of Units: 510
TOP Date: 1997

Average Transacted Price in

August 2007 : $1,125 psf

July 2007 : $1,088 psf

Pebble Bay, one of Singapore's first waterfront condominium developments located in the prime Tanjong Rhu area, obtained its Temporary Occupation Permit (TOP) in October 1997.
The project which is a joint venture with CapitaLand, offers 510 units of luxurious apartments with 20 different designs in sizes ranging from 850 sf to 6,114 sf. The units comprise a mix of studio, 2/3/4-bedroom and penthouse apartments with floor areas ranging from 90 sm to 400 sm. Outstanding amenities and recreational facilities, lush tropical landscaping and panoramic views form an integral part of the development.

Location
Pebble Bay's strategic location in the prime Tanjong Rhu area, ensures easy access to all parts of Singapore. The Central Business District, Orchard Road and Changi Airport are just a few minutes’ drive away via the East Coast Parkway expressway and Nicoll Highway.
Moreover, the project which is adjacent to a proposed marina, offers panoramic waterfront views, outstanding amenities and easy access to recreational facilities in the Kallang Basin. It is within walking distance to The National Stadium, Indoor Stadium, Kallang Tennis Centre and Kallang Theatre and a proposed commercial village with food kiosks and outdoor shopping.

Facilities
Pebble Bay offers world-class resort style facilities. Amongst its landscaped gardens are a swimming pool, a lagoon pool, a wading pool, spa and bubble pool, tennis courts and squash courts. In addition, there is a golf driving range, putting green, fitness circuit, gymnasium, steam rooms and a children’s playground.

To top off the excellent waterfront view and luxurious facilities, Pebble Bay is created with superb quality finishes using natural materials and specially designed stone finishes to mark the luxury resort ambiance.

Astoria Park Condominium Unit Transactions

Astoria Park Condominium

28 - 34 Lorong Mydin

TOP in 1995

Tenure - 99 years wef 01 May 1993

District 14

354 units

2 bedrooms - 79 to 93 sqm

3 bedrooms - 109 to 122 sqm

More Info on Kallang Paya Lebar Expressway (KPE)

Click here

Astoria Park Condominium

St Patrick's View Goes On En Bloc Sale (Business Times, 26 July 2007)

It has been sold en bloc to TG Development Pte Ltd (TGD) for $79 million.
This is 25% higher than the indicated price when the collective sale was launched three months ago.

On its bullish bid, TGD managing director Ong Boon Chuan said: 'The prices for Districts 9, 10 and 11 are quite high but there is room for more upside in the outskirts.'

At $79 million, the price works out to $682 per sq ft per plot ratio (psf ppr), including an estimated development charge of $302,318 for the 83,013 sq ft site.

TGD plans to build a five-storey development of about 100 units with unit sizes of between 1,000 sq ft and 1,400 sq ft. The launch is targeted for mid-2008.

The breakeven cost is estimated at around $1,000 psf, which means new units have to be sold in excess of this.

Comments

Apartments in St Patrick's Row may be worth considering. Saw a unit there in 1st quarter 2006. Now a bit regret not buying.......Sigh......

MediaCorp launches interactive ad portal mocca.com

SINGAPORE: Hunting for a home will soon be more than just about trawling through pages of property listings in the newspapers, thanks to a new e-classified website.

Called mocca — which stands for MediaCorp Online Communities and Classified Advertising — the new channel raises the interactivity factor such as users search, for free, in categories from cars to fashion.

Videos and articles by MediaCorp news agencies TODAY and Channel NewsAsia about property trends as well as links to nearby amenities such as schools will also pop up with the property listing in the new MediaCorp e-classified platform.

"If you think about how classified ads work now, it's very much a one-way thing. The person advertises and you, as the potential buyer, just read about it and do not interact," said MediaCorp's vice-president (New Media Business) Timothy Goh.

"With mocca, you can watch videos of the product and then talk about it in discussion forums as we roll this out progressively. This will bring the peer-to-peer marketplace closer."

In the pipeline for mocca — launched today — are features such as discussion forums for like-minded sellers and buyers, Mr Goh said.

These features will also be available for other search categories, such as travel, education, jobs and fitness.

Posting an ad is free for all categories, except property and vehicles.

There is a charge of $15 for each seven-day listing in these two categories. The advertiser can upload up to five images and a video link with each ad.

Ads on the other categories will expire after seven days. Advertisers can edit or completely change an ad whenever they want during these seven days, after which they have to renew the listing.

The one-week time limit is to ensure that ads on mocca are current, Mr Goh said, pointing out that many online classified advertising sites have lengthy expiration periods or none at all, which create the illusion of having a high volume of ads.

However, a sweetener awaits early birds: There is no charge to post all classified ads on mocca (www.mocca.com) for its first month. - TODAY/ac

Park Connector Network

The Park Connector Network is an island-wide network of linear open spaces that link up major parks, nature sites and housing estates in Singapore. The network will be linked up in phases over the next 10 years and when the entire network is completed, it will form a green network, spanning over 300 km across the whole island, making it convenient to travel from park to park.

The park connectors vary in length, ranging from about 2 km to 10 km, making them ideal for those who like to take short walks to exercise, as well as to cater to cyclists who prefer longer distances. They are usually found alongside the many rivers and canals that flow through the island and are often used as convenient shortcuts to housing estates, MRT stations, and schools.

The park connector optimises the use of land such as drainage reserves, foreshore and road reserves by turning them into beautiful green corridors for recreation.

And green corridors they certainly are! Fringed by lush landscaping on one side, and the river on the other, the park connectors' long stretches of paved tracks make for an enjoyable and safe walk or cycling trip, away from the hustle and bustle of traffic noise and exhaust fumes. Look up among the trees and shrubs, and you would probably see colourful birds and butterflies flitting among the greenery that line the park connectors. The park connector brings one close to nature, yet it is not far from urban areas as well.

Comments

Out of the 15 park connectors in Singapore, 6 of them are located in the EAST. They are (1) Bedok Park Connector, (2) Geylang Park Connector, (3) Kallang Park Connector, (4) Kallang-Geylang Park Connector, (5) Siglap Park Connector, and (6) Tampines Park Connector. Thus a potential house hunter may take into consideration if his/her desired location is siutated near a park connector so as to take advantage of the benefits a park connector can offer.

Will property market see a repeat of 1996?

Business Times Article, 25 July 2007, Kalpana Rashiwala.

THERE'S a sense of deja vu in the air for those of us who witnessed the last residential property boom in the 1990s. Record prices being reported by developers, an en bloc sale being attempted in just about every private estate, foreign buying at record levels, and subsales again in favour.

Even the government's approach to dealing with the situation seems reminiscent of 1996, according to some market watchers.

The Ministry of National Development and Urban Redevelopment Authority have been giving assurances lately that there will be sufficient supply of homes and that they will make more sites available, if necessary. And just like over a decade ago, MND and URA have recently been making public more information on the property market to provide greater transparency.

Flashback to the mid-90s. As far back as 1994, the government raised booking and forfeiture fees to curb speculative activity. But speculation picked up again and in January 1996, URA announced that the government had set aside enough land for 100,000 private homes for the five-year period from 1997 to 2001 - more than thrice the amount necessary to meet its target of releasing land for 6,000 private homes a year.

The following month, URA revealed the sales status (as defined by options granted by developers) of individual private residential projects, and said it would do this each quarter. This was to correct any wrong impression of high take-up rates.

Fast forward to 2007. Last month MND announced the biggest Government Land Sales (GLS) Programme with enough land for about 8,000 private homes.

Earlier this month, URA said that there were about 32,700 yet-to-be-sold private homes in uncompleted projects as of Q1 2007 - possibly enough to meet demand for the next three years.

On the transparency front, URA last week released for the first time information on the number of units sold for each uncompleted private residential project by price bracket, in the month of June. Such information will henceforth be released monthly.

But what if, like in 1996, such measures fail to calm the market?

The thing with the property market is that it is primarily sentiment driven. In a bull run, people may not heed reason and logic and are driven by fear and greed instead.

When the strategy of giving assurances of adequate supply and releasing more market information failed to stem speculation in 1996, the authorities were forced to announce a slew of measures on May 14 that year.

These included taxing as income the gains made from selling properties within three years of purchase and introducing a sellers' stamp duty for those who sold residential properties within three years of purchase.

Financing was also clamped down. Banks could not make housing loans for more than 80 per cent of the purchase price or value of a property, whichever was lower. Permanent residents were limited to one Singapore dollar housing loan each while foreigners were denied such loans altogether.

All of the May 1996 anti-speculation measures were subsequently removed during the property doldrum.
To many market industry participants now, the writing is on the wall. They figure that the government may come up with measures to cool the market if the property bull run threatens Singapore's competitiveness.

However, the stakes are higher now. Many credit the current property boom to the government's efforts to promote Singapore, which have put Singapore on the radar screens of overseas property investors again, and its embrace of foreign talent and high net-worth individuals.

In short, many of the foreign investors in the local property market today were wooed by Singapore.

Slapping a set of harsh measures might send out a negative message about Singapore as an investment destination as a whole.

Also, speculation is yet to reach the heady levels seen in 1996.

Some in the industry think a 'whisper campaign' by the government to tighten financing targeted at banks and developers may be less harsh and avoid a panic crash.

For example, banks could be asked to be more careful in screening housing loan applications. 'Maybe, instead of giving loans up to the maximum 90 per cent of the value of homes, they could limit this to 80 per cent.

This will make people think twice before they pay record prices for homes,' reckons a seasoned industry observer.

Deferred payment schemes extended by developers could also be moderated or suspended, some industry players said. The ability to buy a property by making an initial payment of just 10 or 20 per cent of its value, with the next payment postponed to after the project is completed, makes things a whole lot easier for those thinking of flipping properties for a quick gain. Removing deferred payments should help take the froth from the market.

But there is a school of thought which believes that getting rid of the deferred payment, which often entails buyers paying 3 to 5 per cent more for the price of a home than under a progressive payment scheme, could crash the market.

Some suggest that taxing gains from selling properties within a short period of time may be a fairer way to contain the current exuberance. Those who make quick gains from flipping their properties should be prepared to part with a portion of their gain by paying income tax on it.

It remains to be seen if history will repeat itself.