New mixed use development coming up in Bugis
By Millet Enriquez | Posted: 14 November 2012 2338 hrs
SINGAPORE : A S$3 billion mixed development property is set to vastly alter the Bugis skyline over the next few years.
Named DUO, the property will comprise residences, offices, hotel and retail space.
Its developer, M+S, jointly owned by Malaysia's Khazanah Nasional and Temasek Holdings, unveiled the design of the project on Wednesday.
By 2017, two new towers will be added to the Bugis skyline.
Enclosed in a park-like environment, DUO features 660 units of prime residences, 21 storeys of Grade A offices, a five-star hotel and close to 80,000 square feet of retail space.
Designed by a renowned architect Ole Scheeren, the project is connected to the Bugis MRT interchange that will link the East-West Line and the upcoming Downtown Line.
Its developers are optimistic it will draw strong interest when it launches for sale in early 2013 - with foreign buyers possibly eyeing the residential property.
Tan Sri Azman Yahya, chairman of M+S, said: "The large three international buyers in Singapore have been Malaysians, Indonesians and Chinese. So we expect that the ratio of buyers will be quite similar to any other offerings around the CBD (Central Business District) area. We do expect a significant number of international buyers."
Property consultant HSR said homes in DUO could fetch up to S$2,000 psf depending on size, and a premium of 5 to 10 per cent, given its connectivity to the MRT station.
"Being a Khazanah project, we would expect demand to particularly come from Malaysian investors. The locality would boost the commercial hub status in the Bugis area. It has the potential of being Hong Kong's ICC Tower or Kowloon East if marketed and priced properly to attract financial companies who are saddled with high cost within the financial district," said Donald Han, special advisor at HSR Group.
The lack of Grade A offices in the area should also result in demand for the long term.
"Bugis office supply is confined to mostly grade B stock. The M+S office project can bring critical mass into the area, as a serious business hub. Residential within integrated mixed developments tend to enjoy a premium and sell well in today's market," added Mr Han.
Mr Scheeren said: "I have worked independently for Singaporean clients and independently for Malaysian clients, and I think what is really exciting about the project is that this is indeed a joint venture between both of them. Both the way that that is translated into the architecture and also in a way what that symbolises in itself, it may be both sensitive but also extremely positive."
However, analysts said initial marketing in 2013 may not result in strong take-up, given that pre-leasing usually rises a year prior to completion.
Some analysts also cautioned of downward price pressures on the prime residential market, in light of the government's cooling measures.
Nicholas Mak, executive director at SLP International Property Consultants, said office rents in the Bugis area could also face a downtrend in 2013.
CapitaLand and UEM Land Holdings are the project managers of the development.
- CNA/ms
- wong chee tat :)
Thursday, November 15, 2012
3,000 applicants fail to complete purchase of HDB flats in last 2 years
3,000 applicants fail to complete purchase of HDB flats in last 2 years
By Olivia Siong | Posted: 14 November 2012 2321 hrs
SINGAPORE: Seven per cent or about 3,000 applicants failed to complete the purchase of their new Housing and Development Board (HDB) flats after successfully selecting one in the last two years.
There were 43,000 bookings for new HDB flats in 2010 and 2011.
In a written reply to a parliamentary question filed by MP for Pasir Ris-Punggol GRC Gan Thiam Poh, the Ministry of National Development said there were three main reasons for this.
The reasons include financial difficulties following a job loss, break-up in a family relationship and a change in preference for location.
Currently, all flat buyers are required to pay a non-refundable booking fee when selecting a unit.
Those who fail to complete the purchase after signing the lease agreement will forfeit five per cent of the purchase price of the flat.
They will also be debarred for one year from participating in HDB sales exercises, or receiving housing grants for purchase of a resale flat.
- CNA/lp
- wong chee tat :)
By Olivia Siong | Posted: 14 November 2012 2321 hrs
SINGAPORE: Seven per cent or about 3,000 applicants failed to complete the purchase of their new Housing and Development Board (HDB) flats after successfully selecting one in the last two years.
There were 43,000 bookings for new HDB flats in 2010 and 2011.
In a written reply to a parliamentary question filed by MP for Pasir Ris-Punggol GRC Gan Thiam Poh, the Ministry of National Development said there were three main reasons for this.
The reasons include financial difficulties following a job loss, break-up in a family relationship and a change in preference for location.
Currently, all flat buyers are required to pay a non-refundable booking fee when selecting a unit.
Those who fail to complete the purchase after signing the lease agreement will forfeit five per cent of the purchase price of the flat.
They will also be debarred for one year from participating in HDB sales exercises, or receiving housing grants for purchase of a resale flat.
- CNA/lp
- wong chee tat :)
Singapore's consumer price inflation rate up by 4.8% year on year
Singapore's consumer price inflation rate up by 4.8% year on year
By Linette Lim | Posted: 15 November 2012 0004 hrs
SINGAPORE: Singapore's consumer price inflation rate for first nine months of 2012 increased by 4.8 per cent year on year.
A large part of the increase was due to imputed, rather than actual housing rentals and a surge in the Certificate of Entitlement (COE) premiums for private cars.
COEs contributed 0.9 percentage points to the increase, compared to 0.2 percentage points for public transport costs and 0.2 percentage points for other government fees and charges.
This was revealed by Senior Minister of State for Trade and Industry, Lee Yi Shyan, in a written reply to a question in Parliament.
Nominated MP Laurence Lien had wanted to know whether the government will consider more aggressive measures like a short-term freeze on government fee increases, price increases for new HDB flats and public transport fare hikes, given the persistently high inflation rate.
Mr Lee said the government shares Mr Lien's concerns over the rise in inflation.
It will continue to invest heavily in improving public transport, and is committed to keep public housing affordable.
He added that the government will continue to monitor inflation closely, and is prepared to introduce additional measures if necessary.
- CNA/lp
- wong chee tat :)
By Linette Lim | Posted: 15 November 2012 0004 hrs
SINGAPORE: Singapore's consumer price inflation rate for first nine months of 2012 increased by 4.8 per cent year on year.
A large part of the increase was due to imputed, rather than actual housing rentals and a surge in the Certificate of Entitlement (COE) premiums for private cars.
COEs contributed 0.9 percentage points to the increase, compared to 0.2 percentage points for public transport costs and 0.2 percentage points for other government fees and charges.
This was revealed by Senior Minister of State for Trade and Industry, Lee Yi Shyan, in a written reply to a question in Parliament.
Nominated MP Laurence Lien had wanted to know whether the government will consider more aggressive measures like a short-term freeze on government fee increases, price increases for new HDB flats and public transport fare hikes, given the persistently high inflation rate.
Mr Lee said the government shares Mr Lien's concerns over the rise in inflation.
It will continue to invest heavily in improving public transport, and is committed to keep public housing affordable.
He added that the government will continue to monitor inflation closely, and is prepared to introduce additional measures if necessary.
- CNA/lp
- wong chee tat :)
Interest rate for Ordinary Account savings in CPF to remain at 2.5%
Interest rate for Ordinary Account savings in CPF to remain at 2.5%
Posted: 15 November 2012 1244 hrs
SINGAPORE: The interest rate for Ordinary Account (OA) savings in the Central Provident Fund (CPF) will remain at 2.5 percent from 1 January 2013 to 31 March 2013.
The CPF Board said the computed CPF interest rate, derived from the major local banks' interest rates from 1 August 2012 to 31 October 2012, worked out to be 0.21 percent per annum.
It said as this is below the legislated minimum of 2.5 percent per annum, the OA interest rate will remain unchanged at the legislated minimum of 2.5 percent per annum.
The CPF Board added that an extra 1 percent interest will continue to be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the OA.
The extra interest from the OA will go into the member's Special or Retirement Account to enhance his retirement savings.
As for the HDB's Mortgage Rate, the CPF Board said it will remain unchanged at 2.6 percent per annum from 1 January 2013 to 31 March 2013.
- CNA/de
- wong chee tat :)
Posted: 15 November 2012 1244 hrs
SINGAPORE: The interest rate for Ordinary Account (OA) savings in the Central Provident Fund (CPF) will remain at 2.5 percent from 1 January 2013 to 31 March 2013.
The CPF Board said the computed CPF interest rate, derived from the major local banks' interest rates from 1 August 2012 to 31 October 2012, worked out to be 0.21 percent per annum.
It said as this is below the legislated minimum of 2.5 percent per annum, the OA interest rate will remain unchanged at the legislated minimum of 2.5 percent per annum.
The CPF Board added that an extra 1 percent interest will continue to be paid on the first $60,000 of a member's combined balances, with up to $20,000 from the OA.
The extra interest from the OA will go into the member's Special or Retirement Account to enhance his retirement savings.
As for the HDB's Mortgage Rate, the CPF Board said it will remain unchanged at 2.6 percent per annum from 1 January 2013 to 31 March 2013.
- CNA/de
- wong chee tat :)
Prudent housing choices ensure enough CPF savings for retirement: survey
Prudent housing choices ensure enough CPF savings for retirement: survey
By Alice Chia | Posted: 14 November 2012 1915 hrs
SINGAPORE: With prudent housing choices, young Singaporeans in the workforce today will have enough savings through the Central Provident Fund (CPF) system for their retirement.
This is according to details released on Wednesday from an independent study commissioned by the Ministry of Manpower.
Deputy Prime Minister Tharman Shanmugaratnam first made mention of this study at the opening of the Singapore Human Capital Summit in September this year.
The study was conducted by two researchers from the National University of Singapore, Associate Professors Chia Ngee Choon and Albert Tsui.
In the study, the assumption is that Singaporeans entering the workforce today, would be looking to buy their first homes in 2017.
Another assumption is that the men would be 30 years old, and women 28.
And these couples would buy build-to-order flats that are in keeping with their household incomes.
As workers use CPF savings to finance housing, it is important that they buy a flat type within their means, to leave enough CPF savings for retirement.
For lower-middle income households at the 30th income percentile, typically with a combined monthly income of S$5,100 in 2017, that means a three-room flat.
For median-income households at the 50th income percentile, typically drawing a combined monthly income of S$7,100 in 2017, a four-room flat would be the choice.
Upper-middle income earners at the 70th income percentile, typically earning a combined monthly income of S$9,200 in 2017, could choose a five-room flat.
These figures are projections of 2017 dollars, i.e. nominal household month salary when new entrant turns 30 for males and 28 for females.
With these assumptions, couples can then fully pay their mortgage instalments from their monthly contributions to the CPF ordinary account.
And men earning median incomes at the 50th percentile should be able to replace 70 per cent of their wages on retirement at 65.
That is, their CPF savings should be enough to provide them with 70 per cent of the monthly income that they earned at 55, which is assumed to be the age when a Singaporean's monthly income peaks.
For women, the income replacement rate (IRR) is 64 per cent.
The IRR is a widely-used international measure for retirement adequacy. It refers to the ratio of retirement income to pre-retirement earnings.
The study estimates the IRR that workers could get at age 65 based on their CPF savings. The figures in the study compare well with international standards.
The World Bank recommends a range of 53 to 78 per cent as the IRR for middle-income earners.
Associate professor Chia said that IRR can be used as an indicator of retirement preparedness.
"Our study shows that there is a very clear trade off between retirement adequacy and housing consumption," said associate professor Chia.
"Take for example the base case, when we look at the median worker at say, 50 percentile, we have assumed that this worker will buy a four-room flat. If this household decides to buy a flat type that is one size bigger, say a five room, then we'll see the income replacement rate fall from 70 per cent to 58 per cent," he added.
The median IRR amongst Organisation for Economic Co-operation and Development countries for a median-income earner is 66 per cent.
The study takes into account current CPF policies and features such as CPF contribution and interest rates.
- CNA/lp
- wong chee tat :)
By Alice Chia | Posted: 14 November 2012 1915 hrs
SINGAPORE: With prudent housing choices, young Singaporeans in the workforce today will have enough savings through the Central Provident Fund (CPF) system for their retirement.
This is according to details released on Wednesday from an independent study commissioned by the Ministry of Manpower.
Deputy Prime Minister Tharman Shanmugaratnam first made mention of this study at the opening of the Singapore Human Capital Summit in September this year.
The study was conducted by two researchers from the National University of Singapore, Associate Professors Chia Ngee Choon and Albert Tsui.
In the study, the assumption is that Singaporeans entering the workforce today, would be looking to buy their first homes in 2017.
Another assumption is that the men would be 30 years old, and women 28.
And these couples would buy build-to-order flats that are in keeping with their household incomes.
As workers use CPF savings to finance housing, it is important that they buy a flat type within their means, to leave enough CPF savings for retirement.
For lower-middle income households at the 30th income percentile, typically with a combined monthly income of S$5,100 in 2017, that means a three-room flat.
For median-income households at the 50th income percentile, typically drawing a combined monthly income of S$7,100 in 2017, a four-room flat would be the choice.
Upper-middle income earners at the 70th income percentile, typically earning a combined monthly income of S$9,200 in 2017, could choose a five-room flat.
These figures are projections of 2017 dollars, i.e. nominal household month salary when new entrant turns 30 for males and 28 for females.
With these assumptions, couples can then fully pay their mortgage instalments from their monthly contributions to the CPF ordinary account.
And men earning median incomes at the 50th percentile should be able to replace 70 per cent of their wages on retirement at 65.
That is, their CPF savings should be enough to provide them with 70 per cent of the monthly income that they earned at 55, which is assumed to be the age when a Singaporean's monthly income peaks.
For women, the income replacement rate (IRR) is 64 per cent.
The IRR is a widely-used international measure for retirement adequacy. It refers to the ratio of retirement income to pre-retirement earnings.
The study estimates the IRR that workers could get at age 65 based on their CPF savings. The figures in the study compare well with international standards.
The World Bank recommends a range of 53 to 78 per cent as the IRR for middle-income earners.
Associate professor Chia said that IRR can be used as an indicator of retirement preparedness.
"Our study shows that there is a very clear trade off between retirement adequacy and housing consumption," said associate professor Chia.
"Take for example the base case, when we look at the median worker at say, 50 percentile, we have assumed that this worker will buy a four-room flat. If this household decides to buy a flat type that is one size bigger, say a five room, then we'll see the income replacement rate fall from 70 per cent to 58 per cent," he added.
The median IRR amongst Organisation for Economic Co-operation and Development countries for a median-income earner is 66 per cent.
The study takes into account current CPF policies and features such as CPF contribution and interest rates.
- CNA/lp
- wong chee tat :)
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