Friday, 31 August 2012

News Update - 31 Aug 2012


RESIDENTIAL MARKET
Property prices to ride high on Thomson Line
Residents in the northern region of Singapore can expect the announcement of the upcoming Thomson MRT Line to boost property prices almost immediately, say consultants, although they differ on the extent of the rise.
Homes in the Springleaf/Springside area will see prices rise by 10 per cent at least. Prices will move, starting now; we do not have to wait until the line is completed before prices go up. They will usually move for a few months and then stabilise.
Broadly speaking, consultants BT spoke with expect home prices to spike closer to the completion of the line.
A near term price increase of 5-10 per cent is expected, with a price appreciation in the range of 20-30 per cent when the MRT line is completed.
That being said, prices of properties close to major construction work sites may take a momentary dip to the tune of 5-15 per cent.
The area spanning Woodlands to Upper Thomson will likely see the largest increase in price given that they benefit most from the reduction in travelling time to town.
The Thomson MRT Line will be launched progressively in three stages from the north to the south, with three stations from Woodlands North to Woodlands South ready by 2019, six stations from Springleaf to Caldecott ready in 2020, and 13 stations from Mount Pleasant to the Gardens by the Bay fully operational by 2021.
However, there may eventually be less disparity in prices in different parts of Singapore as the transport network improves connectivity and reduces travelling time, said DTZ's Ms Chua.
The uplift on prices will progressively be less pronounced compared with in the past when there were much fewer properties that enjoy proximity to MRT stations.
Source: Business Times – 31 August 2012
Housing costs bother most US firms here
The cost of housing here has been irritating most US businesses in Singapore although they are quite happy with personal security and a stable government here.
According to the latest survey of senior executives from US companies operating here, 77 per cent of respondents were dissatisfied with housing costs in Singapore, making it the factor they were most displeased with in doing business here.
This mirrors the findings of the survey from the previous year when the exact same proportion of American business executives placed housing costs as the factor they are most unhappy with in Singapore.
Labour and land costs were also factors that featured prominently on their dissatisfaction charts. A total of 48 and 40 per cent of the management of US companies here indicated that they were dissatisfied with office lease costs and the availability of low-cost labour in Singapore respectively, placing them as factors they were most unhappy with after housing costs. The same three concerns topped last year's list.
At the other end of the spectrum, US companies in Singapore feel much safer and have greater confidence in government stability and institutions here this year.
Personal security was the factor that most companies surveyed listed as them being most satisfied with, with 96 per cent of respondents indicating so. Last year, 84 per cent felt the same way.
Some 94 per cent were happy with the stable government and political system, against 89 per cent last year.
Overall, American companies here were satisfied with most of the factors of doing business in Singapore - with the laws and regulations, (lack of) corruption, tax structure, the movement of goods in and out of the country, and the availability of trained personnel all performing well in the survey.
Another area that US companies in Singapore raised concern about is the ability to find adequate space in international schools here, with 38 per cent of respondents in Singapore believing it will be a significant problem in the next 1-3 years.
Despite this, overall expatriate employee satisfaction among the respondents remains high with 97 per cent of them indicating so, 85 per cent of expatriates here wanting to extend their time in Singapore, and 75 per cent of US companies indicating they regularly receive requests for assignments in Singapore from their staff in other locations.
Source: Business Times – 31 August 2012
Valuation suspense grips Pearls Centre
Consultants peg the market value of the strata-titled Pearls Centre in Chinatown between $450 million and $600 million. One consultant suggested that the government compensation may fall within this range, or 5 to 10 per cent either side of the valuation.
According to Dennis Chiu, managing director of the Tang Group of Companies, talk of launching the property onto the collective sale market was floated about three months ago, and a sales committee was formed recently.
Discussions were at a preliminary stage, and the committee was supposed to select a valuer yesterday, said Mr Chiu, whose family controls the Far East Consortium International Limited group in Hong Kong.
Tang Group, which is developing Dorsett Regency Hotel and Dorsett Residence near Chinatown, owns about 47 per cent of Pearls Centre, which spans some 47,000 sqm (about 505,903.3 sq ft).
Of this, about 17 per cent is office space, 43 per cent is shopping space, and 10 per cent is residential. The remaining 30 per cent is carpark space, said Mr Chiu.
According to a Singapore Land Authority spokesperson, compensation will be pegged to the market value of the property, taking into account past transactions, the condition of the property, and other reasonable expenses including legal fees, relocation costs, and stamp duties.
Collective sales that do transpire tend to fetch a 20-30 per cent premium over current market value. That being said, this property has a leasehold tenure, so any premium depends on whether the government will allow the current stakeholders to refresh their lease.
Retail units at Pearls Centre are transacting in the range of $1,100-$2,500 psf depending on the size and floor on which the unit is located. Residential apartments range from about $850-$1,050 psf.
Residential units on higher floors may fetch between $950 psf and $1,050 psf while those on lower floors may fetch between $850 psf to $950 psf.
Following the acquisition of Pearls Centre, the site will be integrated with the adjoining state land for a high-density mixed-use development to optimise land use around the future Thomson Line station at Outram Park.
According to a spokesperson from the Urban Redevelopment Authority, the gross plot ratio for both sites is 5.6. The total area after amalgamating the land is around 2.8 ha (0.53ha from Pearls Centre and 2.29ha from the vacant state land).
Source: Business Times – 31 August 2012

No comments:

Post a Comment