May 25, 2008

Tampines the "Shenton Way of the East"

Part of the URA's 5 year Masterplan 2008:-

Tampines to be the "Shenton Way of the East"
Making of a lively, livable global city
Straits Times - 24 May 2008

"Another theme that runs clearly through the 2008 masterplan is the decentralisation of urban activity to commercial nodes outside the Central Business District.

It is a strategy that first made an appearance in the URA's 1991 concept plan, with the Tampines regional centre identified as the first decentralised commercial hub.

Today Tampines is dubbed "the Shenton Way of the East" with many banks having set up backroom operations there."
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Business Times - 29 May 2008
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"Over the past 10 years, Singapore has developed new areas for businesses to flourish.
Beyond development of the city centre, these 10 years have also seen the growth of other commercial hubs. The Tampines Regional Centre, Buona Vista Sub-regional Centre (now known as One-North) and the Novena Fringe Centre are three such centres outside of the city centre being developed.
Both Tampines and Novena are now bustling commercial centres, with a mix of offices, retail and entertainment facilities that cater to the needs of residents in the eastern part of Singapore.
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Beyond housing, URA has also planned for the recreation and leisure needs of our population.
The Parks and Waterbodies Plan set out proposals for an islandwide network of parks and park connectors. The park connector network has been implemented in stages, with the 42 km-long Eastern Loop running through Bedok, Pasir Ris and Tampines being completed last year."
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May 18, 2008

Property Sector Review

Singapore Property Sector
SECTOR REVIEW
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Vacant real(i)ty
We believe the Singapore residential property sector could see a bursting of a bubble that has been created from exuberant expectations and liquidity over the past two years. With a potential economic slowdown that may last through 2009, and historically high supply looming, we turn more negative on this cyclical sector, which has seen price declines of 40% and stocks trading at up to 70% discounts to RNAVs in previous down-cycles.
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Housing prices have started falling
Though declines are still not widespread due to trickling transactions and developers resistance, secondary transactions reflected prices of like-for-like units down 5-25% frompeak. Our previous zero growth assumption seems to be too optimistic. We now expect physical prices to correct as much as 30% from end-2007 levels over 2008 and 2009, with the high end the most vulnerable. As prices of some properties have doubled or tripled over the past two years, even with a 30% correction, prices would still be at least 40% higher than early-2006 levels for most prime properties.
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Prices could come off 40%
While developers in general have better balance sheets and thus better holding power than during the last cycle, and the environment still looks supportive with negative real rates, still-high rents and the positive vibe stemming from various factors (e.g., F1 race, Integrated Resorts, 2010 Youth Olympics), we believe that these high prices are unsustainable amid the worsening global economy. We believe a price correction will be triggered by:
1) withdrawal of the liquidity that drove up prices over the past two years (en bloc, Deferred Payment Scheme, foreign capital);
2) dumping by marginal speculators who have no means to hold and need to pay up this year and next;
3) potential price cuts by small developers with high gearing that are under pressure to increase cash flow; 4) rising vacancies with rising supply;
4) deterioration of the local employment situation. Singapore is one of the most vulnerable economies to a G3 slowdown, and if foreigner influx slows substantially, new demand may not be able to absorb supply at current price levels. We have revisited our housing supply-demand model, bearing in mind that not all supply pipeline will come through due to construction bottlenecks. It still suggests that the vacancy rate may rise from the current 5-6% to 9.8-19% in our base and worst cases. This could trigger rent and price declines of more than 40%, based on historical trends, in our opinion.
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Source - Credit Suisse

May 5, 2008

En bloc uproar at Bayshore Park, Mandarin Gardens

Jessica Cheam
Wed, May 07, 2008
The Straits Times



En bloc uproar at Bayshore Park, Mandarin Gardens
THE market for en bloc sales may have gone dead quiet, but the issue is still raising a ruckus at two of Singapore's most iconic condominium developments in the East.
Sales committees pushing for the collective sales of Mandarin Gardens and Bayshore Park have been accused of trying to control the management councils running these estates and voting down proposals to upgrade estate facilities.
The committees, made up of residents who are pro-en bloc, have denied the charges.

Still, things came to a head last Sunday at both condos' respective annual general meetings (AGM), which lasted up to 10 hours each.
Sales committees are ad hoc committees formed by residents to explore the potential of an en bloc sale. They are different from the management council, which is appointed at the AGM by residents to run the estate and look into the upgrading of facilities.
Residents against en bloc sales at both condos claim that the sales committees had gone round collecting proxy votes from residents so as to control the outcome of the AGMs.
Mandarin Gardens' emotional AGM has left the 25-year-old estate with no management council at all. The existing council quit and refused to be re-elected because of some resolutions passed at the AGM. At the centre of the dispute was a controversial proposal by the sales committee, which was formed last year, to reduce the management council's current limit of $300,000 for expenses on urgent matters to $50,000. This was successful as the sales committee had enough proxy votes to form the majority. Council chairman Neoh Chin Chee said in a letter to residents last week that the resolutions passed made it 'untenable or difficult to carry on as a council member'. Proposals to upgrade the condo's rainshields and swimming pool tiles were also not approved.
The AGM was eventually adjourned when not enough candidates were nominated.
One resident Jeannette Aruldoss, 44, a lawyer, told The Straits Times that the $50,000 limit restricted the role of the council to run the estate. In emergencies, this fund may not be enough to address safety issues, she said.
But sales committee chairman Mr Tan Kok Khoon said some residents had felt the $300,000 limit was too high.
Over at the 21-year-old Bayshore Park estate, the sales committee proposed and pushed through a resolution to reduce the council members from 14 to nine.
Of the nine, four are also on the sales committee, so some residents are upset about the change.
Bayshore resident Mr S.K. Cheah, 40, a sales director, feels there could be a conflict of interest since sales committee members are likely to act in the interest of a sale, above that of the estate.
He noted that at the AGM, some resolutions for maintenance and upgrading were also voted down.
Another Bayshore Park resident, who declined to be named, commented that one common tactic used by many sales committees is to 'run the estate down' or keep maintenance to a minimum, so residents have little choice but to vote for a sale later.
But Bayshore's sales committee member Alan Chua told The Straits Times that they had no intention of doing that.
'We've lived here for many years and love this place, why would we do that?' he said.
On the en bloc sale potential, Savills Singapore director (marketing and business development) Ku Swee Yong noted that at least $2 billion each would be needed to buy each estate - a tall order even when the market is good. 'With the current market, the sale is impossible,' he said.

This article was first published in The Straits Times on May 5, 2008

May 1, 2008

AIRVIEW TOWERS - black day for minorities

Airview Towers lone minority owner lost at the Court of Appeal.

He was ordered to pay costs at the three levels; STB, High Court and Appeal Court.
Tan Siew Tian and Others v Lee Khek Ern Ken[2008] SGCA 25
Decision date: 24 June 2008 ( free to view for 3 months)

Ruling Overturned
Straits Times - 25 April 2008
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Airview Towers en bloc case back to STB
Straits Times - 25 April 2008
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Majority Owners at Airview Towers win appeal
Business Times- 25 April
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For His daughters, he fought an en bloc battle alone
Weekend Today- 26 April 2008
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After a very lengthy conversation with a learned friend on this issue, I have come to a different level of understanding and retract my earlier statements on Airview Towers on the matter of costs. As an outsider not armed with all the facts and as a layperson not conversant in legal matters - it was an easy conclusion to jump to. Easy but wrong.
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To fall at the last hurdle is tough, but the court is bound to be impartial and the loser pays the costs, regardless. Unless the winning party shows compassion and allows each to pay their own costs there is nothing they, the judges, can do. In this case, the lawyers for the majority turned down the judges' suggestion that each pay their own costs and so there the matter rests.
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Airview Towers is not over yet, as it now goes back to the STB and the remaining 8 points of contention may be raised again for ruling.
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