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Business Times: Thu, Aug 30 [JOHOR BARU] Iskandar Regional Development Authority (Irda) is confident of breaching the RM100 billion (S$40 billion) mark in cumulative committed investments by the end of the year, according to Malaysian daily The Star. Chief executive officer Ismail Ibrahim said hitting the target would be a major coup in proving to sceptics that Iskandar Malaysia was moving in the right direction. He said Iskandar Malaysia had been able to withstand the challenges despite operating amid uncertainties in the global economic situation and emerge even stronger thereafter. "Like in the stock market, it (the RM100 billion mark) is the psychological breakthrough and a defining moment for all of us in Iskandar Malaysia," Mr Ismail told StarBiz. Mr Ismail said all stakeholders had to work even harder to ensure Iskandar Malaysia achieve the target of RM383 billion investments as outlined in the Comprehensive Development Plan. Mr Ismail was speakin

Business Times: Wed, Aug 29 PROPERTY giant Far East Organization yesterday muscled out 14 other bidders to emerge as the top bidder for a smallish 99-year leasehold plot at Farrer Road (next to Lutheran Towers). The plot can potentially generate up to 54 apartments. Far East was the only major residential player that took part in the state tender. Its unit, Far East Soho, bid $45.777 million, or $1,107.80 per square foot per plot ratio (psf ppr), for the 29,509 sq ft plot. Its bid was 3.3 per cent higher than the second-highest bid of around $44.3 million or $1,072.73 psf ppr - from industrial property developer Soon Hock group's unit, Soon Hock Tuas Development. In third spot was Lamo Pte Ltd - a privately owned vehicle of The Hour Glass executive chairman Henry Tay and his son Michael - bidding about $41.38 million or $1,001.48 psf ppr. The lowest bid at yesterday's tender was from a tie-up between Bohai Investments (Seng Kang) and ZACD Investments, which offe

Business Times: Wed, Aug 29 [PETALING JAYA] The DRB-Hicom Bhd announcement that it is investing RM1 billion to accelerate the development of Proton City in Tanjung Malim, Perak, points to a move to consolidate Proton's manufacturing activities in a single location, industry analysts told The Star newspaper. They pointed to reports claiming that Proton's manufacturing land bank of 250 acres (100 hectares) in Shah Alam could have a gross development value of more than RM1 billion, says a report in the daily's business section, Starbiz. "We think that a property development play of the Shah Alam land bank would be a good move, as the value of the Shah Alam real estate can be extracted to fund Proton's plans," said one analyst. However, others pointed out that DRB-Hicom would need to look at issues such as the costs of moving the production facilities from Shah Alam to Tanjung Malim as well as staff concerns. "It would not be easy becaus

Straits Times: Wed, Aug 29 A PRIME residential site has led to stiff competition among 15 developers - and the highest bid for a 99-year leasehold site offered at a state tender in recent years. The site, within 1km of Nanyang Primary School and near other popular primary and secondary schools, is likely to yield homes that are a draw with parents who have school-going children. The top bid of $45.8 million for the Farrer Road site, which beat market expectations, was from Far East Soho, a unit of property giant Far East Organization. It works out to $1,108 per sq ft per plot ratio (psf ppr), a key price measure. This beats a previous record of $1,048 psf ppr lodged in June by a unit of Singapore Land, for a Farrer Drive site. Experts had initially predicted between 10 and 15 bidders, with a top bid of $950 to $1,000 psf ppr. Bohai Investments (Seng Kang) and ZACD Investments together offered the lowest bid of $31 million, or $751 psf ppr. The 2,741.5 sq m lan

Straits Times: Wed, Aug 29 FOREIGNERS are streaming back into the housing market as developers dangle incentives to take the sting out of the recent cooling measures. Overseas buyers - excluding permanent residents (PRs) - snapped up 7 per cent of all private homes in the three months to June, up on the 5 per cent market share in the first quarter, according to consultancy DTZ. In terms of absolute numbers, foreign purchases rose 73 per cent to 611 units in the second quarter, led largely by renewed interest in city centre and city fringe homes. While a huge jump in percentage terms, DTZ noted that purchases are still well below the quarterly average of 1,369 foreign-bought units last year. This sector of the market was jolted when the additional buyer's stamp duty (ABSD) of 10 per cent was introduced for foreign buyers in December. Ms Chua Chor Hoon, DTZ head of Asia-Pacific research, said developers have been offering incentives such as ABSD reimbursemen

Straits Times: Wed, Aug 29 PUBLIC flats that are close to completion could be earmarked by the authorities for couples with young children, property analysts predicted. These units, left unsold in previous launches, could figure in changes to housing policy as the Government seeks to raise fertility rates, they added. In his National Day Rally speech on Sunday, Prime Minister Lee Hsien Loong said the Government was looking at a range of measures to help stem declining birth rates. One was to afford "some consideration to giving couples with young kids priority when they book HDB flats". PropNex chief executive Mohamed Ismail said the target group is likely to be HDB first-timers expecting their first child. Giving them priority in "balance" flats, in particular, would be useful as they would have to wait a substantially shorter time before they get their keys, he said. Balance flats are those not taken up at previous launches for reasons su

Business Times: Wed, Aug 29 COMPLETED private apartments and condos (excluding small units) in the suburbs have been the best price performers year to date, according to National University of Singapore's Singapore Residential Price Index (SRPI) series. The subindex for Non-Central Region (excluding small units) rose 1.3 per cent between December last year and July this year, based on the flash estimates for July released yesterday. Over the same period, the subindex measuring prices of small units (up to 506 sq ft) islandwide dipped 0.1 per cent, while the subindex for Central Region (excluding small units) posted a 3.9 per cent loss, making it the worst performer. The findings are in sync with market trends. DTZ's head of Asia Pacific research Chua Chor Hoon says that the 3.9 per cent YTD price drop for Central Region "reflects the price pressures in the region due to higher prices and an investor profile that is more concerned about global uncertaintie

Straits Times: Wed, Aug 29 TWO freehold properties within walking distance of each other in Little India have been sold en bloc. Sam Leong Mansion, off Jalan Besar, has been acquired by KSH Holdings for $40.3 million. The other plot, made up of two adjoining sites in Race Course Lane, was snapped up by Sysma Holdings for a combined sum of $22.8 million. In the first deal, units of KSH Holdings, Tee International and Heeton Holdings, along with Futuris Holding and ZAP Piling, will jointly redevelop Sam Leong Mansion. The 12,362 sq ft site has a plot ratio of about 3.0 and is zoned for redevelopment into a commercial development. Based on the maximum gross floor area of about 37,087 sq ft, the price works out to $1,086.84 psf per plot ratio (psf ppr). KSH and Tee will each own 35 per cent of this project, while Heeton, Futuris and Zap will take up the remaining 15 per cent, 10 per cent and 5 per cent respectively. At Race Course Lane, Sysma Holdings' sub

Business Times: Wed, Aug 29 [SINGAPORE] Shoebox homes will likely see a drop in demand if the government allows singles to directly purchase new flats from the housing board, say property consultants that BT spoke to. The extent of the drop will depend on the strength of the restrictions that these experts believe will likely be placed on singles purchasing built-to-order (BTO) flats. Said International Property Advisor (IPA) chief executive Ku Swee Yong: "Private apartments in the shoebox category (which singles below 35 used to have to buy because they cannot purchase HDB flats) might see demand wane." This is because the target market for such properties are mainly singles, noted OrangeTee head of research and consultancy Tan Kok Keong. Such homes are 50 square metres (538.2 square feet) and below in size, and have been quite well-received by the market. "We believe that the impact will be keenly felt in the small sized-apartment market," sa

Straits Times: Wed, Aug 29 RESALE home prices last month fell across the board, with the exception of shoebox apartments, with prices rising slightly. One factor was that only a limited number of these tiny homes has been completed so far, according to market experts. The overall Singapore Residential Price Index (SRPI) flash figures out yesterday - tracking a basket of completed non-landed projects - showed resale prices falling 1.1 per cent. This is a reversal of the 0.1 per cent gain in the month before. The non-central home segment suffered the biggest slide as prices fell 1.3 per cent last month compared with the month before. Central home prices recorded a smaller dip of 1 per cent. Small "shoebox" apartments of 506 sq ft and less, however, bucked the trend with a 1.1 per cent rise in prices after a 0.9 per cent fall in June. Experts offered various reasons for the trends seen in the SRPI, which is compiled by the National University of Sin

Straits Times: Wed, Aug 29 TREASURY Holdings Real Estate (THRE), the trustee-manager of Singapore-listed Treasury China Trust (TCT), has been acquired by a private company owned by THRE's chairman Richard Barrett. "Treasury Holdings China Limited, a wholly owned subsidiary of Treasury Holdings, which in turn is owned jointly by Richard Barrett and John Ronan, has disposed of the entire issued share capital of the trustee-manager," THRE announced yesterday. Mr Ronan is TCT's chief executive. The trustee-manager has been acquired by Oriental Management Services Limited, a private company incorporated in Jersey and beneficially owned by Mr Barrett, said THRE. Besides being the joint-owner of Ireland-based Treasury Holdings and the chairman of THRE, Mr Barrett is also a substantial unit-holder of TCT with a direct interest of 6.88 per cent and a deemed interest of 10.93 per cent. "Following the completion of the acquisition, Treasury Holdings shall

Straits Times: Wed, Aug 29 PRIME Minister Lee Hsien Loong may have hinted at the National Day Rally that singles will soon be allowed to buy new flats from the Housing Board (HDB) - but singles are not holding their breath. While they welcomed the prospect of having access to brand new, subsidised flats and not just being confined to the resale market, they do not expect to be put on a level playing field with married couples. "Will we actually get the same chance as couples? Or just delegated the flats that they don't want, or the projects that are undersubscribed?" wondered Mr Heng Chin Chuan, 34. The television producer and part-time lecturer lives with his parents. With his $3,500 to $4,000 monthly income, private property is out of his reach, and a resale flat a stretch. In fact, observers predict that given the HDB's longstanding goal of using public housing to encourage marriage and child-bearing, the policy change for singles will come wi

Business Times: Tue, Aug 28 [SINGAPORE] Development charge (DC) rates are set to increase from Sept 1 for non-landed residential use, say property consultants. This is based on land sales in the past six months at prices above land values implied by prevailing DC rates. Most also forecast higher DC - payable for enhancing the use of some sites or building a bigger development on them - for industrial use, again citing winning land bids at state tenders. However, rates are predicted to remain either flat or increase only slightly for landed residential and commercial use. Nevertheless, commercial DC rates may rise in locations where there have been brisk sales of strata offices or shops, suggests Colliers International director Chia Siew Chuin. These could include Shenton Way (where Oxley Tower and Eon Shenton's office and shop units sold like hot cakes earlier this year), Changi and Upper Changi Roads - shop units at East Village proved to be popular - as well as Uppe

Business Times: Tue, Aug 28 ITS launch in 1999 of the Mid-Valley Megamall - South-east Asia's largest - during the Asian financial crisis might have been unfortunate, but IGB Corp appears to have got the timing right for its RM4.6 billion (S$1.85 billion) retail real estate investment trust. IGB Reit is expected to ride on the positive momentum generated in the wake of large successful initial public offerings (IPOs) by Gas Malaysia, planter Felda Global Ventures Holdings and Integrated Healthcare Holdings, which put the country near the top in public share sales this year. As a stable defensive alternative, Reits are currently enjoying resurgent investor interest. Market players say most Reits are trading at a peak, which in turn has resulted in a dip in yields. "Looking at other Reit prices, I think it's a fair price. In fact I wanted it higher," declared managing director of IGB Reit Management Sdn Bhd Robert Tan of the RM1.25 apiece initial retai

Straits Times: Tue, Aug 28 PRIVATE housing rents have kept climbing to hit a fresh high last month, as a growing number of small apartments drove up prices in per sq ft (psf) terms. A report by property consultancy Savills Singapore found median rents for non-landed homes were up 7 per cent to $3.60 psf a month while rents for landed homes rose 2 per cent to $2.81 psf a month. Across the board, rents for last month came in at a record $3.52 psf a month. This is higher than the previous record of $3.46 psf a month in May. Leasing volumes have also risen in both the landed and non-landed segments, with 4,717 contracts inked last month - 11 per cent more than in June. In the first seven months of the year, contracts were up 5 per cent to 27,932, compared with the same period last year. This led to total transactional value reaching $137 million - 8 per cent more than the $126 million recorded in the same period last year, the Savills report noted. Savills res