News Update - 25 May 2012

RESIDENTIAL MARKET

China buyers lose property top spot

BUYERS from China have lost pole position among foreign purchasers of Singapore property in the wake of December's tough cooling measures.

Mainland buyers, and other foreigners, have fled the local market in droves, stung by a hefty 10 per cent additional stamp duty.

A report found that Chinese, including permanent residents, bought just 292 homes in the first quarter. This is 54 per cent down from the 640 homes bought in the fourth quarter last year and the lowest volume in more than two years.

The proportion of Chinese buyers among non-Singaporean buyers fell correspondingly to 23 per cent from 29 per cent in the three months before, the sharpest drop among all nationalities.

Malaysians reclaimed the top spot with 362 home purchases - a 28 per cent share among foreign buyers - possibly due to the larger number of Malaysian permanent residents here.

As a result of ABSD, demand from non-permanent resident foreigners has nosedived 75 per cent to just 336 units. Their proportion of the private market fell to a three- year low of just 6 per cent. Permanent residents took a 16 per cent share, while Singaporeans made up the remaining 78per cent.

The report also touched on the trend of HDB owners buying shoebox homes of less than 500 sq ft. These tiny units make up 16 per cent of homes bought by those with HDB addresses.

This strong demand for shoebox units, which tend to command higher unit prices, also led to units costing between $1,000 and $1,500 per sq ft (psf) making up the majority of all homes sold in the first quarter. Previously, most homes sold were typically under $1,000 psf.

About 65 per cent, or 461 shoebox units, sold in the first quarter were located in suburban towns, a marked increase from 29 per cent in the previous quarter. Almost half of the shoebox units sold in these suburban areas came from Parc Rosewood. In the city fringe area, the top selling project for these units was Guillemard Edge.

Source: The Straits Times – 25 May 2012

Shoebox flats 'almost inhuman'

SINGAPORE should curb the increasing trend of so-called shoebox apartments because they are 'almost inhuman', CapitaLand chief executive officer Liew Mun Leong said.

The Government last week said it was concerned that shoebox apartments are mushrooming as private home sales surged to a three-year high with record purchases of units that are smaller than 50sq m, or 538 sq ft.

'I am dead against shoebox developments,' Mr Liew said, in an interview at the downtown Singapore headquarters of South-east Asia's biggest developer. 'The Government should intervene. Singapore's land is very precious and you are wasting your scarce resources.'

Population growth, scarce land and surging property values have prompted developers to shrink apartment space.

Home prices surged to a record at the end of last year.

The Government may introduce measures to regulate the sale of shoebox apartments after a record number were sold in the first quarter, National Development Minister Khaw Boon Wan said in Parliament last week.

Developers sold 1,764 shoebox units in the first quarter, or 27per cent of all home sales, the most since the Urban Redevelopment Authority began collating the data in 2007.

'It's almost inhuman, it's not good for the welfare of the family to feel that constrained,' said Mr Liew, 65, who grew up in a one-bedroom apartment with nine people and often slept along the corridor.

Government controls have not slowed housing transactions in Singapore, driven by suburban projects, he said, reiterating the company's aim to sell as many as 1,000 homes annually over the next two to three years.

'We don't think we have an issue with' the target, he said. 'If you're aiming for the high-end, central core areas like Orchard Road, the numbers will not be so optimistic. If you're selling to the mass market, then the demand is still there.'

The next set of curbs may be targeted at smaller apartments, said Maybank Kim Eng Holdings analyst Wilson Liew.

CapitaLand is lobbying against shoebox units, said Mr Liew, citing a recent visit to a 400sq ft unit in Hong Kong.

'I used to joke that when I sat on the sofa, I didn't need the remote control to switch on the TV, I used my toes,' he said. 'If you build 200 sq ft, 300 sq ft for a family of two or three, you might as well stay in a box. There needs to be some degree of comfort level.'

Source: The Straits Times – 25 May 2012

News Update - 24 May 2012

RESIDENTIAL MARKET

Two residential sites up for tender

THE owners of three landed properties in Amber Road in the East Coast area are joining forces to put their adjoining plots of land up for sale by tender.

The freehold sites have a total land area of 28,409 sq ft and are zoned for residential use under the 2008 Master Plan. They have a gross plot ratio of 2.8.

The sellers are expecting offers in the region of $73 million to $80 million.

Under the Master Plan, the entire plot may be redeveloped into a high-rise residential development of over 20 storeys with partial sea views; the plot can yield about 75 apartments with an average size of 1,000 sq ft.

As the properties are not strata-titled, there is no need for an application to the Strata Titles Board.

The successful purchaser would be able to take possession of the subject site upon completion, and could plan towards marketing and building the new project relatively quickly.

The site is near schools and amenities like Parkway Parade.

The tender opens today and closes on June 22.

Another larger freehold residential site, currently used for industrial purposes, is also on sale today.

The site, at 63 Hillview Avenue in the Upper Bukit Timah area, was launched for sale by tender.

The 230,915 sq ft site has a wide road frontage of about 200m, facing Hillview Avenue.

It is occupied by Lam Soon Industrial Building, a 10-storey light industrial development with 154 warehouses and factories.

Under the 2008 Master Plan, the site is zoned for residential use with a gross plot ratio of 1.92.

The indicative pricing is $330 million, or $925 per sq ft per plot ratio.

The site could yield a 10-storey building with 370 residential units of 1,200 sq ft each.

The successful buyer could also choose to retain the existing building for light industrial work, subject to the Urban Redevelopment Authority's approval.

Source: The Straits Times – 24 May 2012

COMMERCIAL MARKET

Tenants upset about linkway project

A GROUP of unhappy shop tenants in the China Square area are appealing for more help during renovation works aimed at creating a new commercial precinct.

The seven tenants, mainly food and beverage operators in Nankin Row, say they could lose 70 per cent of business as most of their business comes from the lunchtime office crowd.

They say patrons who use the al fresco dining areas will be driven away by the noise and dirt involved in building a sheltered linkway along Nankin Row at China Square Central.

They are unhappy at what they regard as a short notice period and the lack of information offered by landlord Great Eastern.

The linkway to Far East Square is part of a project integrating Far East Square, China Square Central and Great Eastern Centre into a precinct known as China Place, boosted by new retail, entertainment and hospitality amenities. The $14 million cost will be shared equally by Great Eastern, Far East Organization and Frasers Commercial Trust.

Some of the affected eateries such as Ricebox and The Tea Party Cafe moved in less than a year ago while others like Viet Express have been there for six years.

Industry players estimate that monthly rents at Nankin Row range from $8,000 to $10,000, depending on the shop sizes.

Most tenants acknowledge that the linkway will improve business but would like help during the work. Some would prefer a delay in construction to a slower period such as the school holidays. Others suggested rental rebates.

However, not all tenants are unhappy about the change. Frasers Commercial Trust, which owns China Square Central, said: 'There is no feedback from tenants at China Square Central regarding the hoarding and their business arising from the works for the precinct master plan. Office tenants indicated that they are looking forward to better dining and entertainment amenities resulting from the master plan.'

The Great Eastern spokesman said it too has had positive feedback from some tenants who welcome construction of the covered walkway as it will provide shelter from the sun and rain.

'The enhancement work will continue as scheduled. We believe the improvements would ultimately bring about a more vibrant and conducive F&B environment, which is likely to draw more visitors to the area.'

Source: The Straits Times – 24 May 2012

News Update - 22 May 2012

RESIDENTIAL MARKET

Private homes for $1 million or less

BUYERS can still snap up private apartments of reasonable size for less than $1 million - but do not expect up-to-the-minute styling or prime locations.

Yet such buys could end up being a good deal if they are in an area that is set to be revitalised or developed. Buyers have been quick to jump in.

Homes costing less than $1 million can be found in both new launches and the secondary market but it is rarer in the former, because the increase in land prices has led developers to offer higher per sq ft (psf) prices and smaller units.

New launches of flats of at least 1,000 sq ft and costing below $1 million can be found in the north-eastern areas like Hougang, Sengkang and Punggol.

Deals can also be found in upcoming condos in Pasir Ris.

In Yishun and Sembawang, some similar transactions were made at The Nautical and Eight Courtyards.

These areas are also good scouting grounds for buyers looking to get a resale unit, which could be as big as 1,400 sq ft for that price.

Many shoebox units - measuring about 540 sq ft or less - cost less than $1 million but these are said to be too small for a family.

Decent-sized units can also be had for a similar price, but buyers have to bear in mind the trade-offs, like how an older condo may look dated.

While some people might not mind buying an older project, those looking for homes with lasting power may find it worthwhile to look into executive condominiums instead.

A freehold unit would be better value compared to 99-year leaseholds. The latter would have run down by quite a number of years and may not appreciate as well over the longer term.

Source: The Straits Times – 19 May 2012

CBD to keep buzzing after office hours

A TRANSFORMATION is under way in the heart of the Central Business District (CBD).

The area's traditional corporate profile is taking on a new after-office hours vibrancy as many more residents move into the district.

More than 4,600 homes are expected to be completed in the CBD by the end of 2015.

Many of these homes will be in Robinson Road, Shenton Way and the nearby Tanjong Pagar.

By the time these homes are ready, the CBD's once sleepy population will have sky-rocketed 14-fold since 2007.

And already, various upcoming projects there, though pricey, have attracted healthy interest.

Far East Organization's The Clift, for instance, has sold 250 units out of 312 available. The smallest unit there costs nearly $2 million.

In Tanjong Pagar, the same developer's Altez has sold 213 condominium units out of 280 available.

Altez, a 62-storey condo at 16 Enggor Street, is being sold at an average of $2,206 psf.

Some distance away, at 70 Shenton Way, mixed-use Eon Shenton will be built with 132 apartments. About 95 units have been sold.

Other upcoming projects like the mixed-use Oxley Tower and Skysuites @ Anson, will also be thrown into the mix.

Yet to be launched, a GuocoLand development directly above Tanjong Pagar MRT station will be completed by 2016 - the first in the CBD to have homes, offices, shops and a hotel.

These projects join several in the area that were completed earlier, such as Marina Bay Residences, Icon and Lumiere.

The added residential buzz means the CBD could bring in the crowds even after hours, property experts said - in line with the Government's plan for the CBD to be a place to work, live and play.

Downtown living could prove to be popular, especially among the younger professionals.

In other mature cities like New York, downtown living is part of the city fabric. In fact, in some cities in the US, the silver population will move back into the city because of the amenities.

Source: The Straits Times – 19 May 2012

Tweak prior cooling measures before imposing new ones

Those who were uncertain over whether the robust home sales by developers chalked up in recent months can be sustained have been left with no doubt following Tuesday's release of April's sales figures.

In all, a total of 2,487 new private homes - excluding executive condominiums (ECs) - were sold last month. This is a near 4-per-cent jump from March and is the highest monthly level since 2,772 units were sold in July 2009.

With actual evidence overthrowing the doubts of property experts in the private sector, could the people in the public sector have similarly misread and misunderstood the factors driving the private housing market? And if they did, surely it would be in the interest of the long-term stability of the private housing market that they review some the earlier cooling measures implemented, especially those that have not quite met their objectives.

Already, we can see the distortions in the market created by some of these cooling measures. In general, all segments of the housing market should behave in the same way, in terms of price trends or volume of sales. After all, they all provide the same service - accommodation - and are substitutes.

Today, we see the volume of resale transactions shrinking while new sales boom. Prices of suburban homes move in opposite direction to those in the central areas. This is simply not normal.

And new apartment sizes are getting smaller and smaller. Shoebox units of 50 sq m (538 sq ft) or less bear the brunt of criticism but how many of us are aware that half of all new apartment sales today are for those below 75 sq m? And if more small units are being built, does it not mean that the supply of large or normal-sized apartments have been interrupted.

They have been lots of hints that the next set of cooling measures may target the shoebox unit.

But before we introduce another set of cooling measures, we should fine tune some of the earlier ones. As I see it, both the sellers' and buyers' stamp duty measures have more or less the same impact on the market. With the introduction of the additional buyers' stamp duty, surely there can a case for the sellers' stamp duty measure to be made less punitive.

If we keep adding on to the cooling measures - and my feeling is that there will be more to come as we have not quite addressed the liquidity problem - without a review of the earlier ones, there will come a time when the market will be caught in some kind of gridlock.

Source: Today – 18 May 2012

INDUSTRIAL MARKET

Govt curbs on industrial property?

SINGAPORE - The demand for and prices of property here have remained buoyant despite measures by the Government to cool the sector, sparking concerns that another round of measures may be on the cards.

This time around, however, analysts say the Government may focus on curbing demand for industrial properties.

Prices of industrial property increased 7.2 per cent in the first quarter, according to the Urban Redevelopment Authority's Property Price Index. Part of the reason for this is a shift in buying sentiment to industrial properties from residential units.

This has led to calls by property experts for more enforcement on real estate agents to accurately market and advertise industrial premises.

Challenges in regulating the industrial property sector are present though and some analysts observe that it will not be easy to differentiate genuine buyers from speculative investors.

Any government attempt to further detail what a particular industrial space can be used for would also stifle businesses which have to be flexible in a volatile global economy.

One of the methods the authorities are using to soften prices is to increase industrial land supply.

Some experts also expect demand to decline naturally amid the current gloomy economy and for industrial rents to stabilise in the current quarter and possibly even drop at the end of the year.

Source: Today – 22 May 2012

News Update - 18 May 2012

RESIDENTIAL MARKET

Tampines site draws top bid of $417.86 psf ppr

THE Urban Redevelopment Authority's tender for a 99-year leasehold condo plot at Tampines Avenue 10 yesterday fetched three bids, with the highest at $417.86 per square foot per plot ratio (psf ppr), or $252.78 million.

The top bid - from a tie-up between Far East Organization, Frasers Centrepoint and Japan's Sekisui House - was 4.4 per cent more than the $242.1 million or $400.21 psf ppr offer from EL Development. The only other bidder, City Developments's White Haven Properties, offered $172.9 million or $285.82 psf ppr.

Analysts polled by BT when the plot was launched in March said that the top bids for the plot would be $350-465 psf ppr. While the top bid at yesterday's tender was within expectations, the tender participation rate was muted, noted property consultants.

The factors affecting tender response could be that the site is less centrally located within Tampines and also the presence of a reserve-list site next door.

Those interested would have considered the possibility of the reserve site being triggered and sold which would pose competition to the subject parcel.

Frasers Centrepoint said yesterday: "The partners will develop a condominium comprising 670 units spread over eight 15-storey blocks."

Based on the top bid, a new project on the site would break even at about $800-820 psf and is likely to be priced at around $900 psf on average.

Source: Business Times – 18 May 2012

Buyers of Paya Lebar condo complain to watchdog

A GROUP of buyers has claimed that marketing agents misled them over the completion date of a Paya Lebar residential development they invested in.

They allege the agents assured them the 99-unit Suites @ Paya Lebar in Upper Paya Lebar Road would be completed by as early as October, making the apartments that much more appealing. However, the development is unlikely to be completed by this year given the current stage of construction for the development.

The sales and purchase agreement (SPA) puts the expected completion date at before the end of 2014, which is the legally binding deadline. While developers often complete projects earlier than required, they are not obliged to.

Fragrance Properties said it did not instruct any of its agents to market Suites @ Paya Lebar as having an expected completion date of the end of this year.

It said that while there have been some site delays, they are not major and the work is ongoing, adding that buyers will be able to collect their keys by Dec 31, 2014, as indicated in the option to purchase and SPA.

Experts say the case highlights the need for buyers to know what is contractually binding and what might be marketing speak.

'Estate agents and salespersons must ensure that all materials that advertise or promote a property accurately describe (it),' said Ms Purnima Shantilal, CEA's director of licensing and investigations. 'The information in the advertisements, which may include the expected TOP, must not be inaccurate, false or misleading.'

Non-compliance of advertising guidelines might lead to disciplinary actions such as warnings, fines, or a revocation or suspension of licence or registration.

Source: The Straits Times – 18 May 2012

SINGAPORE

American int'l school plans $300m campus

A $300 million school - the largest ever such investment in the region - will soon be built by Stamford American International School.

The first phase of the K-12 facility, that is, a school that provides both primary and secondary education, will be launched in August at its Upper Serangoon Campus. It is due for completion in August 2014.

Aside from the one-off $300 million injection into the economy, the school looks towards a recurrent injection of several million dollars each year into the local economy.

This may also open up employment opportunities for locals, as while "most of the teachers are foreigners, it doesn't mean that we will not look to hire locals if they are qualified", said Brian Rogove, Cognita's chief executive officer of Asia Pacific pointed out. Cognita is the company behind Stamford, and the group runs over 58 other schools.

This expansion hopes to cater to the growing demand for international schools.

Moreover, Mr Rogove pointed out the expatriate demand that grew by 2,500 students during the financial crisis in spite of expectations that demand would fall. There are approximately 40,000 students in international schools in Singapore, and "that is expected to grow significantly over the next 5 to 10 years," he added.

"We do like Singapore, and if the market conditions are right, and the demand is there, with offerings that are considerable then we will consider expanding in Singapore," he said.

Source: Business Times – 18 May 2012

News Update - 17 May 2012

RESIDENTIAL MARKET

New norm brewing in private home sales

Elevated sales figures for private homes may become the new norm given the sector's sustained record performance over the past few months, say industry watchers.

It was already no surprise when the Urban Redevelopment Authority (URA) announced a pick-up in April's private home sales volume following a temporary respite in March.

URA reported a total of 2,487 private homes - excluding executive condominiums (ECs) - being sold in the month of April, a 4 per cent jump from March, and slightly higher than the 2,417 units achieved back in record-making February. Sales volume for the month was also a generous 38 per cent higher than the same period a year ago.

Things continued to be quiet in the EC launch scene with no new projects released for two consecutive months. In the absence of fresh stock, the segment's sales suffered, falling to 173 units, as compared to 639 units in March, bringing the total tally of new private homes (including ECs) to 2,660 for the month, 12 per cent lower month-on-month.

April also seemed to be a popular month among developers to launch their new projects, with names such as Barker 9, Eon Shenton, Hillsta, Katong Regency, Seahill, Sky Habitat, The Promenade @ Pelikat and Twentyone Angullia Park hitting the market.

Uptake for many of these new developments was also healthy with Katong Regency (244 units sold at a median price of $1,709 psf) topping the table for the most number of units sold in the month, among both new and older launches.

Notably, the UOL development which was sold out within a week was said to have been popular with buyers due to rising popularity of homes with a commercial component due to the added convenience it brings.

On the EC front, developments such as Twin Waterfalls and The Tampines Trilliant continued to sell well with both projects transacting 60 and 39 units respectively in April. For those with much deeper pockets, the most exorbitant unit sold for the month was an apartment at Hilltops (located at Cairnhill Circle) which transacted at $4,398 psf. However, the bulk of properties sold in April continued to hover in the $1,000 to $1,500 psf range.

Regionally, the core central region (CCR) reflected the sharpest pick-up in demand, with 106 units being sold in the area, up almost two-fold from March.

Based on caveats lodged, the median prices of new sales in the OCR have been rising more than in the CCR resulting in the gap between OCR and CCR closing from 2.5 in June 2007 to 1.8 times in April 2012. This has motivated more Singaporean buyers to enter the CCR market as evidenced by the recent developer sales result and this trend of a bottom-up support of the high end segment can be expected to continue.

Homes in the rest of central region (RCR) also seemed to have gained favour with buyers, with the number of units sold rising 70 per cent month-on- month to 867 units. But mass market homes in the outside central region (OCR) bucked the positive trend, with sales declining 17 per cent to 1,514 after reaching 1,825 in March - though demand was still deemed to be healthy.

Source: Business Times – 16 May 2012

Govt rolls out 5 private housing sites

For the fourth consecutive month, the government has announced the launch of 99-year leasehold private housing sites under its land sales programme.

In the latest instalment yesterday, the government rolled out five sites - one on the confirmed list and the other four on the reserve list - that can potentially generate about 2,100 homes.

The confirmed list plot is at Pheng Geck Avenue near Potong Pasir MRT Station. A land parcel next door (at Tai Thong Crescent) is one of the four made available for application on the reserve list yesterday. It is zoned for residential use with commercial use at the first storey.

Two other reserve-list plots are at Kim Tian Road (a stone's throw away from Tiong Bahru MRT Station and Tiong Bahru Plaza) and Prince Charles Crescent (about 400-500 metres from Redhill MRT Station). The fourth reserve list site is at Sengkang West Way, near the H2O Residences condo project.

The confirmed list site at Pheng Geck Avenue is next to the condo plot sold at a state tender in August last year to Tuan Sing for about $567 per square foot per plot ratio (psf ppr), which in turn is close to an earlier plot sold for $607 psf ppr to Qingdao Construction at a June 2010 tender (now being developed into Nin Residence).

Six property consultants polled by BT yesterday expect top bids for the Pheng Geck Avenue plot of $550-810 psf ppr. Based on the top end of that range, the average selling price for a new project on the site could be close to $1,450 psf. Some analysts predict 10-15 bids.

Forecasts of top bids for the Tai Thong Crescent plot range from about $550 psf ppr to $800 psf ppr, with some consultants predicting 10-15 bids, if the site were to be launched in the current market.

Analysts gave rave reviews on the Kim Tian plot, a short walk from Tiong Bahru MRT Station. The site is centrally located, and the Tiong Bahru/Kim Tian area is fairly niche and self-contained with eateries, shops and conservation apartments.

However, analysts differed widely in their expectations of how much the plot could sell for if it were to be tendered out today - from $580 psf ppr to $870 psf ppr.

For the site at Prince Charles Crescent, expectations of the winning bid are in the $650-900 psf ppr range. The site is near a plot at Jervois Road picked up by Singapore Land for $881 psf ppr at a state tender in February. Closer to Redhill MRT Station, City Developments bought a plot (next to Ascentia Sky condo) for $754 psf ppr in December.

Analysts priced the Sengkang West Way plot at $336-440 psf ppr. While the site is not near an MRT or LRT station, it is located in a growth area and a new condo on the site would find demand from upgraders.

Source: Business Times – 16 May 2012

Property agent jailed for stamp duty fraud

A 24-YEAR-OLD property agent was yesterday jailed for 12 weeks for using fake stamp certificates, in the first case of its kind.

Desmond Tan Hock Heng, who was with Dennis Wee Group, admitted cheating the Commissioner of Stamp Duties of $3,694 by using eight bogus stamp certificates in seven property rental deals.

Separately, he was jailed for another two weeks for pocketing rent payments that two clients had entrusted to him, amounting to $4,600 in one case and $3,600 in the other.

Tan is the first property agent to be charged under the Stamp Duties Act for passing off counterfeit stamp certificates as genuine.

Stamp duty is a tax on documents or agreements relating to properties, such as lease agreements, options to purchase, and sale and purchase agreements.

After stamp duty has been paid, a stamp certificate will be issued.

Stamping and payment of stamp duty for leases and tenancy agreements are made online via the Inland Revenue Authority of Singapore's (Iras) e-Stamping system.

When a document needs to be stamped, the user would log on to the system to fill in an electronic form, after which the system would generate a unique document reference number.

After payment is made, the system would generate the certificate bearing the unique number. The user can then print the certificate from his computer.

Acting on a tip-off, Iras started looking into various rental transactions handled by Tan.

Investigations show that Tan, using a genuine certificate from a previous deal he had handled, forged eight stamp certificates by altering details such as the addresses, names of the landlords and tenants, stamp duty amounts and dates of documents.

He then presented these bogus certificates to unsuspecting landlords, agents of the landlords and tenants.

He later deleted the original and fake certificates, but Iras' forensic teams recovered them from his desktop computer and laptop.

Yesterday, he pleaded guilty to five counts of using counterfeit stamp certificates between January and April last year.

Another three counts were taken into consideration.

Iras said it takes a very serious view of non-stamping and stamp duty fraud.

Any person or business that deliberately counterfeits stamp certificates and knowingly misrepresents them as genuine faces a fine of up to $10,000 and up to three years' jail.

Members of the public can check the authenticity of stamp certificates on the e-Stamping website athttps://estamping.iras.gov.sg

Cases of stamp certificate fraud can be reported to Iras at estamp@iras.gov.sg or on 6351-3697/3698.

Source: The Straits Times – 16 May 2012

Residential project in Sydney launching here

PROPERTY buyers here can add one more option to their list: residential units in the heart of Sydney offered by a local developer.

The Mark, a 412-unit project in Chippendale, on the southern edge of the city's central business district, will be launched here this weekend. It will also be launched at the same time in Sydney.

The Mark is among several residential projects at Central Park, said to be the single-largest mixed-use development in downtown Sydney.

It is being jointly developed by Frasers Property Australia, the Australian arm of local developer Frasers Centrepoint, and Sekisui House Australia, a Japanese firm.

Interest from buyers here has prompted the developers to launch the project in Singapore. Interested buyers have inquired about The Mark at launches of local properties here.

The Australian property market never really collapsed; for all the while it has been pretty steady. Although demand is not as strong as in Singapore, it's quite stable.

Frasers Property Australia chief executive Guy Pahor said there was a shortage of student housing in the area, which hosts three major universities. That could make The Mark a sound investment.

Mixed-use developments in the city are also becoming more popular, he said.

The Mark, which will have access to facilities such as a swimming pool, is set to be completed in early 2014. Homes for sale range from one-bedroom to three-bedroom apartments. Dual-key units are also available.

The Mark is priced from A$480,000 (S$625,000) upwards, or an average price of about A$1,005 per sq ft.

Source: The Straits Times – 16 May 2012

COMMERCIAL MARKET

Robinsons to open flagship store at Heeren next year

RETAIL group Robinsons is investing $40 million towards a new flagship store at The Heeren, which is likely to open mid-next year.

Robinsons is part of the Dubai-based Al-Futtaim Group, which bought Robinsons in 2008 and took it private.

The 150,000 square foot flagship, which will be dubbed Robinsons Orchard @ The Heeren, will also introduce food & beverage offerings.

Robinsons Orchard @ The Heeren will be operated under a long-term lease agreement with Swee Cheng Holdings, which is also making a "significant investment" in the project. The building will undergo a major overhaul from the third quarter of this year.

Also in the works is an 80,000 sq ft store at Jem shopping mall at Jurong Gateway next year.

Other Robinsons store locations include Raffles City, The Shoppes at Marina Bay Sands as well as Centrepoint, for which the lease for its 130,000 sq ft store at the shopping mall runs out in 2014.

"We do believe there's a business to be done in the suburbs if you get the right development, tenant mix and right ... developer," he said, adding that eastern Singapore could also potentially represent an opportunity for a store location.

While the Robinsons store at MBS is "not (doing) as well as hoped", "MBS retail is an example of a business that people will have to be patient about", Mr McCallum said. "The link between say, gambling and retail is not immediate."

Beyond Singapore, the group is looking into a second Robinsons store in Kuala Lumpur.

Robinsons also operates brands such as Marks & Spencer (M&S) and River Island, though it is planning to discontinue its River Island operations, which is a franchise.

Still, one of the challenges facing the retail industry this year is flagging consumer confidence as the global economy continues to battle headwinds.

Source: Business Times – 16 May 2012