12月私宅租金微涨0.1％

12月私宅租金微涨0.1％
周文龙 2016年01月13日 1557

（联合早报网讯）房地产交易网站SRX今天发布最新的房地产租金数据，本地私宅租金止跌回升，去年12月份私宅租金比之前一个月微升0.1％，终止了非有地私宅租金连续10个月跌势。

数据显示，12月份各类别私宅中，核心中央区（CCR）和中央区以外（OCR）的私宅租金上扬，分别涨了1.0％和0.1％。其他中央区（RCR）的私宅项目则下跌0.6％。

同比而言，去年12月私宅租金同比下跌5.4％。

就出租私宅单位数量方面，12月份出租单位减少7％，从去年11月的3325个单位，在12月跌至3093个单位。

另一方面，SRX发布的组屋租金数据，12月份组屋租金环比下跌0.6％。

三房式、四房式、五房式组屋租金分别跌0.6％、0.8％和0.8％。公寓式组屋租金则持平。

12月份出租的组屋单位预计有1790个，较11月份的1817个，增加1.5％。

- See more at: http://www.zaobao.com.sg/realtime/singapore/story20160113-570482#sthash.si0A8mqH.dpuf

- wong chee tat :)

SRX预估数据： 公寓转售价去年跌势放缓

SRX预估数据： 公寓转售价去年跌势放缓

涂健强 2016年01月13日

涂健强　报道 thorkk@sph.com.sg

2015年对本地私宅领域来说像是还未过完的寒冬，房地产交易网站SRX昨天公布的最新预估数据显示，本地公寓的转售价格在去年下跌了2.1％。不过，跟前年的4％跌幅比较，去年的情况已有改善，而去年私宅转售数量也比2014年增加28％。

不过分析师预计今年私宅市场仍会保持疲弱，屋价会进一步下跌2％至3％。

上月非有地私宅转售价

无法延续11月上涨趋势

用来追踪转售价格数据的SRX Property Index（简称SPI指数）显示，上个月非有地私宅转售价格无法延续11月的上涨趋势，12月的公寓市场交易量虽然有所增加，但是转售价却比11月下跌0.8％，其中，位于其他中央区（RCR）的私宅跌幅最大（1.2%）,核心中央区（CCR）和中央区以外（OCR）的转售价格则分别下跌0.5％和0.7％。

若和2014年12月相比，2015年12月的公寓转售价减少了2.1％，和2014年1月的高峰期相比则下跌7.8％。

ERA产业主要执行员林东荣认为，去年私宅价格跌幅比2014年的4％跌幅来得小，这对于屋主而言算是一个小小的慰藉，不过在市场环境没有改善的情况下，今年私宅价格预计仍会进一步下跌。

林东荣说：“踏入2016年，本地私宅市场预计仍会面对很强劲的逆风，因为新加坡经济疲弱的走势还有利率上升都是可以遇见的事情。”

博纳集团（PropNex Realty）总裁伊斯迈（Mohamed Ismail）同样预测，在政府仍然维持降温措施的情况下，预计本地私宅价格在今年会缓慢下跌2％到3％，但他认为房价下跌后，便宜的房价可以促使买家出手购买，这将会让私宅的交易量有所提升。

SRX的数据显示，去年12月有519个公寓单位的转售交易，比11月的472个单位增加了10％，与2014年同期的360个转售单位相比则增加了44.2％。

伊斯迈说：“虽然价格下跌反映出目前疲弱的市场情绪以及降温措施的影响还在，可是交易量上升却反映买家有信心房价已慢慢筑底，过后将会反弹，所以愿意进场出手。”

林东荣说：“12月份向来是交易淡静的季节，所以有关交易量提升很令人看好，我们发现有更多买家转向投资转售市场，尤其是寻找更大型单位的自住型买家，因为发展商所推出的新单位基本上都是更小型的单位。全年而言，SRX数据显示2015年的公寓转售数量为6364个单位，比2014年增加28％，今年预计也会有更多的转售交易，新项目推出的单位数量预计会减少。”

SRX的数据显示，去年12月有519个公寓单位的转售交易，比11月的472个单位增加了10％，与2014年同期的360个转售单位相比则增加了44.2％。

- See more at: http://www.zaobao.com.sg/finance/singapore/story20160113-570313#sthash.lXWO5DIE.dpuf

- wong chee tat :)

Closure of Maybank@RobinsonRd, due to branch relocation

Closure of Maybank@RobinsonRd, due to branch relocation
(Effective: 10 July 2015, end of business day)

As Maybank@RobinsonRd will be relocating to Punggol, the Branch will cease operation at the present premises.

The Branch will be relocating to Waterway Point, a new shopping mall expected to be launched in Punggol Central this year. The opening of Maybank@WaterwayPoint will be announced at a closer date through our website and statement messages.

For your banking needs, please locate any of our 22 Branches here or log in to Maybank Online Banking (www.maybank2u.com.sg).

We apologise for any inconvenience that you may experience.




- wong chee tat :)

Revised Subletting Policy for HDB Industrial Properties

Revised Subletting Policy for HDB Industrial Properties

Date issued : 30 Mar 2015

 From 1 Jun 2015, new and existing tenants of HDB industrial properties will not be allowed to sublet their industrial properties. Tenants with existing approved subletting arrangements will be allowed to renew their subletting agreements up to 31 Dec 2017, to give them time to make business adjustments. The revised subletting policy will better support industrialists in operating their core businesses, and enable more productive use of scarce industrial land in Singapore.

Revised Subletting Policy

2HDB manages close to 12,000 industrial properties island-wide, including workshops, warehouses and factories. Majority (about 98%) are rented out on 1-, 2- or 3-year term tenancies. Currently, tenants of HDB industrial properties are allowed to sublet up to 50% of their factory floor space. About 380 tenants, or approximately 3% of the total number of tenants, are currently subletting space in their industrial properties.


3The main purpose of HDB’s industrial space is to support industrialists in operating their core businesses. To better achieve this intent, HDB will be revising its subletting policy for industrial properties. From 1 Jun 2015, all new and existing tenants will not be allowed to sublet their industrial properties. This revision also seeks to promote more responsible and productive use of scarce industrial land, by encouraging tenants to rent only the amount of space that they need. This change will also align HDB’s subletting policy for industrial properties with that of other government agencies such as JTC Corporation.


4To ease the transition, tenants with existing approved subletting agreements may renew their subletting agreements up to 31 Dec 2017. Thereafter, they will not be allowed to sublet their properties. Tenants with excess space are encouraged to right-size their factories to smaller units, and can renew their tenancy with HDB for a lower quantum at the end of their current term.


5Tenants who are currently subletting their premises to their wholly-owned subsidiaries or related companies will not be affected by this policy revision, and may continue their subletting arrangement.


“Related companies” refers to: a. Subtenant is wholly-owned by the tenant or vice versa; b. Percentage shareholding relationship (not including common individual directors and shareholders) between the tenant and the subtenant is at least 51%; or c. Tenant and subtenant are 100% owned by the same parent company.


6HDB industrial tenants can call 1800-866-3077 for further enquiries on the revised policy.


- wong chee tat :)

Rental data to be released on quarterly basis

Rental data to be released on quarterly basis

The move comes on the back of calls from businesses for greater transparency in the rental market. This has led to the Singapore Business Federation introducing the Fair Tenancy Framework, which includes the release of clearer rental data as an initiative.

SINGAPORE: Businesses will get greater clarity on trends in Singapore's rental market. Starting on Thursday (Jan 22), more detailed data on rents for retail, office and industrial space will be released by the Government every quarter.

The move comes on the back of calls from businesses for greater transparency in the rental market. Earlier this week, the Singapore Business Federation (SBF) introduced the Fair Tenancy Framework, which includes the release of clearer rental data as an initiative.

Many businesses have complained of soaring rental rates imposed by landlords, which threaten to heighten operating costs. With the new move, the public can now view rental data at the 25th, 50th, and 75th percentile by floor level and area.

For instance, if one wants to find out the monthly unit rent for retail space at the 25th percentile in District 9, which includes the Orchard area, one can now look at what trends are like for basement units that are 30 square metres and below. Previously, rental data was only released at the 50th percentile and by street name, excluding information by floor level and area.

Ms Cynthia Phua, chairman of the rental practices working group at SBF, said: ”Having the 25th percentile and the 75th percentile - that part in itself will give a very good range for a tenant who is assessing the rental for that unit itself, whether they are transacting at the upper range of the rental range, or the lower range."

The new data can be accessed on the websites of the Urban Redevelopment Authority (URA) and industrial landlord JTC Corporation.

The Ministry of Trade and Industry said the additional details covering floor level and unit size will help businesses make more informed decisions before signing a contract.

Minister of State for Trade and Industry Teo Ser Luck said: "Feedback from businesses is that we have to be a little bit more specific. Then the question is: How specific we want to go?

"If we want to be too specific, say, for example by every single building, we have a few considerations. Where do you get the data? And whether in obtaining the source of data, whether you actually intrude into the privacy or even ... contravene the data privacy law."

Depending on the response to the new set of data, further adjustments or additional information may be included in the future.

- CNA/ac/dl

- wong chee tat :)

Office space prices up, but retail space prices soften slightly in Q3: URA

Office space prices up, but retail space prices soften slightly in Q3: URA

In the past three months, vacancy rates for office space declined, but the opposite was true for retail space, the Urban Redevelopment Authority said on Friday (Oct 24).

SINGAPORE: Prices of office space increased by 1.6 per cent in the third quarter of the year, while rental prices of office space rose 2.6 per cent in the same period, the Urban Redevelopment Authority (URA) said on Friday (Oct 24).

In the same period, the vacancy rate of office space fell to 8.4 per cent, compared to 9.6 per cent at the end of the second quarter. The URA said that this was in part due to a 47,000sqm decrease in the stock of office space in the third quarter, compared with a 1,000sqm decrease three months prior. It was the largest quarterly decline since 1992, according to consultancy Knight Frank.

Occupancy rate remained healthy at 91.6 per cent in the third quarter. The amount of occupied office space increased by 50,000sqm (nett) in the third quarter, compared to the 22,000sqm (nett) increase in the previous quarter, the URA said.

RETAIL PRICES DIP

Prices of retail space declined by 0.2 per cent in the third quarter, following on a decline of 0.3 per cent in the previous three months. The increase of rental rates of retail space also slowed, rising by 0.1 per cent in the past three months, compared to the 0.6 per cent increase in the second quarter of the year.

The amount of occupied retail space increased by 15,000sqm (nett) in the third quarter, while the stock of retail space increased by 52,000sqm (nett) in the same period. As a result, the islandwide vacancy rate of retail space rose to 6.5 per cent at the end of third quarter, up from 5.9 per cent as of end-June.

Knight Frank said the islandwide occupancy rate of 93.5 percent in the third quarter was the lowest since the first quarter of 2011.

Analysts said retail rents could face downward pressure next year. Chestertons’ managing director, Mr Donald Han, noted: "Moving into 2015, we expect rentals to come under pressure mainly because tenants are more worried about their bottomline, more concerned about overall operating cost and labour cost, and we expect margins to be affected.

“Retailers are probably unable to pay higher rents come renewal. We probably will see rentals correcting 1, 2 per cent, but those development that are in the Grade A, prime retail malls will probably not see too much reduction in terms of rental."

OFFICE RENTS

CBRE Research said the average rent for Grade A office buildings in Singapore is S$10.95 per square foot per month, which is still some way off its record high.

Mr Desmond Sim, head of research for Southeast Asia at CBRE Research, elaborated: “The previous peak was in 2008 and we are likely 9.3 per cent off that peak. In our forecast, we do not see rents start to match that peak. At that time, GDP was doing relatively well, 6 to 8 per cent.

“What we see now is that GDP is pretty much controlled. Demand from financial institutions is also very limited."

NON-FINANCIAL SECTORS TO DRIVE DEMAND FOR OFFICE SPACE

Looking ahead, analysts expect non-financial sectors to continue to drive demand for office space. But they said some banks may be looking for room to grow, especially if they see substantial growth in the wealth management and renminbi clearing business.

Office rents have already gone up by over 7 per cent in the first three quarters of this year. For the whole of 2014, office rents are likely to increase 10 per cent, and analysts expect a similar pace of growth in 2015, with most of the rental growth seen in the first half of next year.

Meanwhile, office supply will remain tight next year, before new buildings like Marina One are completed in 2016.

INDUSTRIAL SPACE SEGMENT MOST CHALLENGING

Analysts said the industrial space segment will probably be most challenging - when compared with retail and office. Latest numbers from JTC showed growing weakness in multiple-user factory space, with prices falling 1.8 per cent on-quarter in the third quarter.

Knight Frank said: "Going forward, price depreciation for factory space is likely to continue in the coming quarters with the high supply of both factory and warehouse spaces. Demand for strata-titled factory units is likely to be reduced in the short-term, with the market's general expectation of further price moderations in light of the cautious manufacturing sentiment.

“We view that the rents would continue its decline in the coming quarters well into early next year. While this trend would pose greater challenges for the landlords, this would potentially benefit SMEs (small and medium enterprises) who are eager to have find industrial space at more available locations."

- CNA/es/ms

- wong chee tat :)

Premium grade office rents surge 6.1% in Q3: Colliers

Premium grade office rents surge 6.1% in Q3: Colliers

The quarter-on-quarter increase was the highest in three years, and comes amid a continued shortage of office space in the central business district, the real estate services firm says.

SINGAPORE: Premium grade office rents in the Raffles Place/New Downtown area surged 6.1 per cent in the third quarter to S$11.67 psf per month amid a continued shortage of office space in the central business district, real estate services firm Colliers International said on Monday (Oct 13).

The 6.1 per cent quarter-on-quarter increase was the highest in three years, and was nearly double the 3.1 percent pace recorded in the second quarter.

Grade A office space in the Raffles Place/New Downtown area rose 2.9 per cent quarter on quarter to S$10.25 psf in July-September, while Grade A rents in the Shenton Way and Tanjong Pagar area gained 2.9 per cent to S$8.83 psf.

Colliers defines premium-grade offices as those found in relatively new buildings with large floor plates of more than 20,000sqft as well as intelligent features. Examples of such buildings include Marina Bay Financial Centre and Asia Square.

Grade A offices, on the other hand, refer to those in good quality buildings in strategic locations that are well served by amenities and transport nodes, for example 6 Battery Road and Republic Plaza Tower 1.

Colliers said the rise in office rents comes amid a supply squeeze, with the average occupancy rates of most micro-markets having breached the technical full occupancy rate of 95 per cent.

For instance, as of September 2014, the average occupancy rate for Grade A space in Raffles Place/New Downtown and Shenton Way/Tanjong Pagar stood at 97.2 per cent and 99.4 per cent, respectively.

- CNA/cy


- wong chee tat :)

Fewer people selling HDB flats immediately after Minimum Occupation Period

Fewer people selling HDB flats immediately after Minimum Occupation Period

Only 470 HDB flats were sold within a year of owners meeting the Minimum Occupation Period last year, half of 2012's numbers.

SINGAPORE: Fewer people are selling their new Housing and Development Board (HDB) flats immediately after meeting the Minimum Occupation Period (MOP), said HDB Tuesday (June 3).

Currently, owners are required to physically occupy their flat for five years, before they are allowed to sell their home in the open market or sublet the entire unit. They are also not allowed to buy or invest in a private residential property during their MOP.

Now, it seems fewer are choosing to sell once they've met that requirement.

According to HDB, there were only 470 flats sold within one year of meeting the MOP in 2013. This is less than half the number seen in 2012, when 1,006 flats were sold.

In 2010, the number was 1,338 -- the highest in the last five years. In 2011, only 1,231 units were sold.

"Last year's HDB resale prices have started to moderate," said Mr Eugene Lim, Key Executive Officer at ERA Realty Network. "We saw prices start to come down, especially towards the second half of last year. So those who are not in urgent need of selling their flat would probably want to wait it out for the next cycle, instead of selling their flat when the market is going down. They are probably waiting for the next upturn."

In the meantime, more are choosing to sublet their flats within one-year of meeting the MOP. There were 412 units sublet last year, up from 268 units in 2012 and 322 units in 2011.

"People see public housing as a price asset, because the minute they sell it, they are not able to generate income and at the same time, they are not able to enter the (HDB) market again," said Mr Mohamed Ismail, CEO of PropNex. "Today we are talking about public housing having a decent rental yield of about 4 to 4.5 per cent, which is marginally higher than private property, which would have 3 to 3.5 per cent (rental yield)."

"A lot of homeowners feel if they were to dispose of their HDB flat and buy a private property, and subsequently buy a HDB again, they will be forced to sell off their private property," added Mr Lim. "This is the current government policy, so most homeowners if they can afford to, will try and hold on to both their HDB flats and their private property."

HDB owners who buy private property, are not required to dispose of their existing HDB flat. However, private property owners who buy an HDB flat are given six months to sell off their private property after the purchase of the flat.

HDB says over the last five years, the proportion of those who own a private residence and HDB flat concurrently has remained stable at around four per cent. However, analysts say the absolute number could have grown since there are more HDB flats in the system today.

"The base has gotten much bigger," said Mr Lim. "That means there are absolutely more flats in the system today."

"If the percentage increased to double-digits, then we would be concerned." said Mr Ismail. "Are there a lot of people trying to hold on to public housing and yet invest? I think these are very reasonable and acceptable numbers."

With prices in the HDB resale market still moderating, analysts say it is unlikely that HDB apartment owners will see any urgency in selling off their flat in the coming year. Experts say they expect the number of people choosing to sublet their flat to go up, even though rental is likely to remain relatively flat.

- CNA/ek

- wong chee tat :)

去年多个地区零售租金下跌

去年多个地区零售租金下跌

多家郊区商场在去年陆续开业，为本地零售商场带来竞争，导致多个地区的零售租金下跌。

房地产咨询公司戴德梁行（DTZ）的数据显示，乌节路／史各士路一带的零售空间租金在去年下跌了0.3％，而其他市区的租金全年下跌多达0.9％。郊区的零售空间租金则下跌0.2％。

分层地契零售单位　去年交易量大减；料获更好支持。完整报道，请翻阅11.01.2014《联合早报》。
- See more at: http://news.omy.sg/News/Finance/Qu-Nian-Duo-Ge-Di-Qu-Ling-Shou-Zu-Jin-Xia-Die-233971#sthash.WYaPlFdR.dpuf


- wong chee tat :)

HDB subletting approvals tripled in last 6 years: analysts

HDB subletting approvals tripled in last 6 years: analysts

    By Khoo Fang Xuan
    POSTED: 07 Dec 2013 22:02

Analysts said HDB's approvals of subletting of whole flats have tripled in the last six years, resulting in a concentration of foreigners in a block or neighbourhood. The National Development Ministry is looking at imposing a cap on the percentage of foreigners in HDB flats.

SINGAPORE: Analysts said HDB's approvals of subletting of whole flats have tripled in the last six years, resulting in a concentration of foreigners in a block or neighbourhood.

The National Development Ministry is looking at imposing a cap on the percentage of foreigners in HDB flats. This was the result of feedback from residents.

Khoo Swee Yong, CEO of Century 21, said: "Within the last six years, we actually had 30,000 additional flats across the island that were given permission for whole-flat subletting.

"45,000 flats as a total proportion of the HDB stocks in Singapore of over 900,000 is just about five per cent. How that five per cent of HDB flats that are allowed to be sublet could congregate into certain blocks of HDB flats that may have up to, as minister (Khaw Boon Wan) said, 18 per cent foreigners living in those blocks."

National Development Minister Khaw Boon Wan had written about the cap in a blog post on Friday.

Analysts said the restriction will affect companies that hire expats, as HDB flats are a more affordable housing option for foreigners as compared to private housing.

Lee Bee Wah, GPC chair for national development and environment, said: “We need to have this cap perhaps while MND is working out the details. The cap can be based on block level and then neighbourhood level. This is to spread out the foreigners from congregating and forming that enclave."

- CNA/xq

- wong chee tat :)

COV for resale flats fall below S$10,000 in Nov 2013

COV for resale flats fall below S$10,000 in Nov 2013

    By Lynda Hong
    POSTED: 05 Dec 2013 13:13
 
Cash premiums for resale flats fell below S$10,000 in November for the first time since July 2009. According to flash estimates compiled by the Singapore Real Estate Exchange (SRX), the cash-over-valuation (COV) for HDB resale flats reached S$8,000 in November.

SINGAPORE: Cash premiums for resale flats fell below S$10,000 in November for the first time since July 2009.

According to flash estimates compiled by the Singapore Real Estate Exchange (SRX), the cash-over-valuation (COV) for HDB resale flats reached S$8,000 in November.

Alan Cheong, research head at Savills Singapore, said: “The fall in COVs, though expected, is disconcerting. Because right now, the COV, on average, is below S$10,000. If it goes on this way, it will go into negative territory very soon.

“A falling COV like this, if wrongly interpreted in the hands of unsophisticated sellers, may trigger a panic selling situation."

Meanwhile, 13.1 per cent of HDB resale deals closed below valuation in November, up from October's 8.5 per cent. Sengkang, Choa Chu Kang, Jurong West, Woodlands and Hougang saw the most numbers of negative COV deals last month.

Overall HDB resale prices dropped 0.6 per cent in November, reaching the lowest level since September 2012.

SRX said 1,051 HDB flats were re-sold in November, down 11.5 per cent from October (1,187). Compared to a year ago, resale volumes fell 34 per cent.

Thomas Tan, executive director of RE/MAX, said: “It would be a trend going into early 2014. Traditionally, yes, this is the lull period right up to Chinese New Year.

“We can also see that the government has released lots of supply in terms of new flats in the BTO (Build-To-Order) launches and recent measures of limiting the mortgage servicing ratio to 30 per cent, that would affect affordability for many resale flat buyers.”

Over in the private condominium market, momentum also slowed, with resale volumes falling 34 per cent in November.

Resale prices of private homes declined 1.5 per cent in November, marking the third consecutive monthly drop in the overall resale price index.

SRX said this is also the lowest price level observed in this year, down 4.1 per cent from the peak in February.

Prices fell across the board for resale transactions across the island, with private homes in the city area contracting by 2.0 per cent.

Prices of resale homes in the suburban areas dipped 0.9 per cent, while those in the city fringe declined 0.7 per cent.

About 387 non-landed homes were resold in November, down 22.9 per cent from October. On a year-on-year basis, this represented a 62 per cent drop from the 1,019 units transacted in November 2012.

Meanwhile, rentals of private condominiums remained flat after three months of decline, and median rentals of HDB flats dipped by S$50 to S$2,350, the first dip since June 2012.

Some market watchers expect the rental market to maintain rentals at existing rates at best, with landlords more keen to retain current tenants or sign new leases at slightly lower rents.

- CNA/ac/ms

- wong chee tat :)

3 biggest reasons why home prices are unlikely to crash next year

3 biggest reasons why home prices are unlikely to crash next year

No 'excessive' correction for headline prices.

According to OCBC Investment Research, barring a macro crisis, it does not believe headline prices will correct excessively (>20%) in 2014.

This is due to three reasons.

Here's more:

1) The direct impact of a physical oversupply (of homes which are already sold) is first on vacancy rates and subsequently on rental prices.

While falling rents will pressure home prices, we do not see many home-owners force-selling into a softening market given that a negative rental carry is the norm in Singapore historically and that the average individual balance sheet remains fairly benign.

2) The level of unsoldpipeline held by developers (which forms the primary supply) is currently at 36k units. This is lower than the 10-year historical average of 43k units and is not overly onerous.

While developers will likely ease prices ahead to move inventory, a fire-sale situation is unlikely to ensue given relatively strong balance sheets.

3) Finally, we believe the data currently point to a fairly high price elasticity of demand. That is, significant numbers of buyers will come into the market at every incremental price dip.

This is illustrated when CapitaLand introduced discounts at its 1715-unit d’Leedon in 1Q13 and subsequently saw 543 more units sold by 3Q13.

Similarly, developers which set lower prices at recent new launches (Sky Vue at Bishan and Thomson Three at Bright Hill Dr.) saw firm performances, despite the Jul-13 TDSR measures.


- wong chee tat :)

Rental, labour costs push cooked food prices higher

Rental, labour costs push cooked food prices higher

    By Loi Kar Yee
    POSTED: 31 Oct 2013 22:20

Rental and labour costs have affected cooked food prices. Some hawkers told Channel NewsAsia cooked food prices have risen by at least 10 per cent compared to the same period last year.

SINGAPORE: Rental and labour costs have affected cooked food prices.

Some hawkers told Channel NewsAsia that cooked food prices have risen by at least 10 per cent compared to the same period last year.

NTUC Foodfare, a social enterprise that runs food courts and cooked food stalls, said it had to adjust its cooked food prices by about seven per cent.

The enterprise has a social outreach programme called 'Rice Garden', and the price of its cheapest meal starts at about S$2 at some hawker stalls.

Foodfare said it has plans to roll out this programme to more hawker centres by opening two stalls every month in order to have 100 stalls by 2015.

Perry Ong, CEO of NTUC Foodfare, said: "Even though we may be a social enterprise, we are not immune to the reality of the market today.

"As you know, the market for labour is very tight, so we have seen our fair share of increases in terms of labour costs. Rental costs have also continued to climb.

"This year, compared to the past years, and based on our own experiences, the labour cost has gone up in excess of six per cent, and for rental cost over the last year, we have seen an increase of anything between five and 20 per cent."

- CNA/ms

- wong chee tat :)

Singapore's inflation eases to 1.6% in September

Singapore's inflation eases to 1.6% in September

    POSTED: 23 Oct 2013 13:19
 
Singapore's inflation rate eased in September after four consecutive months of gains, largely due to decline in private road transport cost.

SINGAPORE: Singapore's inflation rate eased in September after four consecutive months of gains, largely due to decline in private road transport cost.

The Department of Statistics said the Consumer Price Index (CPI) rose 1.6 per cent year-on-year in September, compared to 2.0 per cent in August.

The headline CPI rate is below economists' forecasts of about 2.0 per cent for September.

Private road transport cost fell by 2.0 per cent after rising marginally in August.

In a statement, the Monetary Authority of Singapore (MAS) said the correction in car prices was due to the high base a year ago, and it more than offset the increase in petrol pump prices in September.

Accommodation cost eased to 3.9 per cent, which is due to a smaller increase in market rentals for both private and HDB properties.

Services inflation was stable at 2.7 per cent, as the higher recreation and entertainment cost was offset by lower contributions from education and household services fees.

Food inflation was 2.4 per cent in September, similar to a month ago.

MAS core inflation, which excludes the costs of accommodation and private road transport, was slightly lower at 1.7 per cent in September, compared to 1.8 per cent in August.

MAS said overall imported inflation is expected to remain subdued, but firms facing higher rentals, COE premiums for commercial vehicles, and labour costs could translate to higher prices of consumer services.

As a result. the MAS core inflation is expected to rise over the next few quarters, and average 1.5 to 2 per cent in 2013 and 2 to 3 per cent in 2014.

CPI-All Items inflation is projected to come in at 2.5 to 3 per cent in 2013 and 2 to 3 per cent in 2014.

- CNA/de

- wong chee tat :)

HDB resale price index "could drop as early as Q4"

HDB resale price index "could drop as early as Q4"

    By Wong Siew Ying
    POSTED: 02 Sep 2013 8:40 PM
    UPDATED: 03 Sep 2013 12:19 AM

The policy changes announced by the Housing & Development Board (HDB) last week could bring about a drop in HDB's resale price index as early as the fourth quarter this year, said analysts.

SINGAPORE: The policy changes announced by the Housing & Development Board (HDB) last week could bring about a drop in HDB's resale price index as early as the fourth quarter this year, said analysts.

If so, it will be the index's first quarterly drop in almost five years.

The new measures are also likely to have ripple effects on other segments of the property market.

On August 27, the HDB barred new permanent residents (PRs) from buying resale flats till three years after obtaining their PR status.

PRs account for about 20 per cent of transactions in the HDB resale market.

Analysts said the move will hurt transaction volume in the near term and expect HDB resale price growth to be largely flat in the third quarter, or a negative growth as early as the fourth quarter.

Eugene Lim, key executive officer for ERA, said: "More and more larger flats are now being sold at valuation, and some of them are even sold below valuation.

“Based on market data, the median is about S$20,000, down from S$35,000 at the beginning of the year (2013). When COV (Cash-Over-Valuation) comes down, resale prices will come down. All in all, that's why… you may see a negative in the HDB resale price index (at year-end)."

OrangeTee projected HDB resale prices to inch up by no more than 0.5 per cent in Q3 and a marginal contraction in Q4.

Meanwhile, Propnex is more optimistic, expecting prices to climb by up to 1 per cent in Q3 and 0.5 per cent in Q4.

The rental market is expected to get a lift and analysts said some HDB owners have shelved plans to sell their flats, choosing instead to rent them out to new PRs.

ERA also expected the private home resale market to bounce back in the next six months, supported by demand from new PRs. But they are likely to favour units in the suburban areas that are priced between S$800,000 and S$1.5 million.

To encourage financial prudence, the government has also further tightened housing loan terms.

The maximum tenure for HDB housing loans has been reduced to 25 years from 30 years, while the Mortgage Servicing Ratio has been cut to 30 per cent from 35 per cent of the borrower's monthly income.

Similar arrangements were also made for the tenure of new housing loans and re-financing facilities granted by financial institutions for the purchase of HDB flats.

New bank loans with tenures exceeding 25 years and up to 30 years will also be subjected to tighter loan-to-value (LTV) limits.

Some analysts believe these terms will drive demand for executive condominiums (EC).

Christine Li, Head of Research & Consultancy at OrangeTee, said: "A lot of buyers will actually go for new ECs in the market because they can get 30- to 35-year loan tenure as well as higher TDSR (total debt servicing ratio framework) -- 60 per cent of their monthly income. From the investment point of view, the capital appreciation, ECs seem to have more potential upside."

As the property market stabilises, there could be some downward pressure on land prices.

Mohamed Ismail, CEO of Propnex, said: "I don't think we are going to witness new record prices in the upcoming land sites. Most of these upcoming sites are in the outlying areas.

"I think the developers will take into consideration the current sentiment; the prices could be muted or similar to the last couple of land bids or maybe marginally lower.

"But I am not expecting the land bids to… come down by 10 to 20 per cent."

- CNA/gn

- wong chee tat :)

Car rentals rise by 20% over long weekend

Car rentals rise by 20% over long weekend

    POSTED: 08 Aug 2013 5:35 PM

Some car rental companies have said car rentals have gone up by some 20 per cent over the long weekend, compared to the same period last year. The companies added that their car rental packages were sold as early as a month ago.

SINGAPORE: Some car rental companies have said car rentals have gone up by some 20 per cent over the long weekend, compared to the same period last year.

The companies added that their car rental packages were sold as early as a month ago.

Hawk Rent a Car said it has rented out some 500 cars.

At another company, Ace Drive, about 80 per cent of the customers are Muslims who have rented the cars to visit their relatives during the Hari Raya holiday.

The other 20 per cent of its customers have rented the cars to head across the Causeway.

The companies believe that the rental business will continue to increase even after the festive season.

Jesse Tan, managing director at Ace Drive, said: "Another reason is because, lately, the MAS has come out with the loan curbs... This helps to increase the (rental) demand for this period."

- CNA/xq

- wong chee tat :)

Higher rentals push up prices at some coffee joints

Higher rentals push up prices at some coffee joints

    POSTED: 06 Aug 2013 6:08 AM
  
At least three coffee joints here have recently raised prices, citing rising operational costs, especially rentals.

SINGAPORE: At least three coffee joints here have recently raised prices, citing rising operational costs, especially rentals.

The move comes as the chain operator of S11 coffeeshops increased its drink prices by 10 cents across all 15 outlets at the start of June.

Ya Kun raised prices by 10 to 20 cents starting July 27, citing escalating operating costs leading to a "juncture whereby a price revision is inevitable", said a notice posted at storefronts dated June 26.

A cup of coffee at Ya Kun now costs S$1.60 instead of S$1.50.

The coffee chain's rising operational costs came from "a bit of everything", said Mr Adrin Loi, Executive Chairman of Ya Kun. Rental accounts for the bulk of costs at the chain's 44 Ya Kun outlets, followed by raw material and manpower.

Mr Loi said labour costs have gone up as workers working more than 44 hours a week are paid an overtime rate of 1.5 times their hourly rate, and the Foreign Worker Levy has also increased.

The chain also had to pay its staff higher salaries to remain competitive in a tight labour market. It had previously said it plans to hire more retirees and housewives to fuel its expansion to 100 outlets by 2015.

"Sometimes, we bear the costs … we control the price. But at the end of the day, the worker will be affected. We cannot give them better rewards, and we want to reward our staff who perform well," Mr Loi said.

Old Town White Coffee, which has eight outlets here, is in the middle of a revamp involving renovations and menu changes. TODAY understands that this will translate to an increase in prices, of not more than 50 cents, at four outlets - City Square Mall, JCube, Orchard Cineleisure and Square 2 - that have been upgraded in recent months.

The upgrading for a "fresher and more contemporary ambience" is part of the company's strategy to retain customers and, hence, manage rising costs, said Ms Dawn Liew, General Manager of Kopitiam Asia Pacific, which manages the Old Town outlets in Singapore.

"Rising costs are part and parcel of doing business and this spreads across an array of items. In saying that, rentals are becoming a lot steeper," she said.

The Coffee Bean and Tea Leaf also raised its prices,by 10 or 20 cents, two months ago, but only for food items.

Prices at Starbucks, Wang Cafe, Spinelli Coffee Company and Toast Box remain the same.

-TODAY

- wong chee tat :)

16 cases of car rental scams in 2012

16 cases of car rental scams in 2012

    POSTED: 22 Jul 2013 6:37 PM
 
There were 16 cases of car rental scams last year and a quarter of such cases occurred during the Hari Raya period, said the Consumers Association of Singapore.

SINGAPORE: There were 16 cases of car rental scams last year and a quarter of such cases occurred during the Hari Raya period, says the Consumers Association of Singapore (CASE).

Complaints included overcharging and car companies not meeting contract requirements.

With Hari Raya just round the corner, CASE is advising consumers to read rental agreements carefully before signing it and also ensure proper insurance coverage.

CASE adds that claims should be put in writing to prevent potential disputes and consumers should not sign blank forms.

- CNA/fa

- wong chee tat :)

Resale prices of non-landed private residential units up 1.8 per cent in June: SRX

Resale prices of non-landed private residential units up 1.8 per cent in June: SRX
    POSTED: 05 Jul 2013 11:24 AM

Resale prices of non-landed private residential units showed an overall increase of 1.8 per cent in June 2013. This is according to a flash report by the Singapore Real Estate Exchange (SRX).

SINGAPORE: Resale prices of non-landed private residential units showed an overall increase of 1.8 per cent in June 2013. This is according to a flash report by the Singapore Real Estate Exchange (SRX).

An estimated 605 non-landed units were transacted in June. SRX said this is a 21 per cent drop from the volume of 762 units in May 2013. When compared to June 2012, it is a 38 per cent decrease in resale transaction volume.

HDB resale prices slipped 0.1 per cent in June. SRX said this is the second consecutive marginal monthly drop in resale prices.

According to flash estimates, 1,210 HDB flats were sold in the resale market in June -- about nine per cent less than May, where there were 1,324 resale cases. It is 32 per cent less than the resale volume in June 2012, where 1,790 HDB resale flats were transacted.

Overall HDB cash-over-valuation (COV) in June dropped S$3,000 to end at S$24,000. This is lower than the COV of S$25,000 registered in February and April 2012.

Overall rental prices for non-landed private residential in June slipped 0.2 per cent from May. This marks a fifth consecutive monthly drop in overall rents.

Overall HDB monthly rental rates in June remained unchanged at S$2,400.

An estimated 1,410 HDB flats were rented in June, 9 per cent less than May's 1,554 rental transactions. It is slightly less than the 1,480 flats rented in June 2012.

- CNA/ac

- wong chee tat :)

Singapore's office rental market expected to go up

Singapore's office rental market expected to go up

    By Toni Waterman
    POSTED: 26 Jun 2013 11:24 PM
  
Singapore's office rental market is on the rebound after bottoming out in the last quarter of 2012, according to Cushman & Wakefield.

SINGAPORE: Singapore's office rental market is on the rebound after bottoming out in the last quarter of 2012, according to Cushman & Wakefield.

In its quarterly office market report, the real estate firm said rents are on the rise and vacancies are drying up, though not all office buildings are sharing the comeback.

Cushman & Wakefield's latest office market report showed that the average rent in prime Grade A locations was up 4.2 per cent in the second quarter, from a quarter earlier, hitting S$9.03 a square foot per month.

That was up from S$8.99 per square foot per month in the first quarter of this year.

Sigrid Zialcita, managing director of research for the Asia Pacific at Cushman & Wakefield, said: "We are expecting rents to go up across the board on the back of very solid demand.

"We're not going to see the spikes we've seen in the 2007-2008 time frame, where rents went as high as S$18-S$19 a foot."

The report showed that all the CBD submarkets saw average rents appreciate, with Marina Bay and Shenton Way seeing a 9 per cent rise in rents. In the fringe area, Orchard Road's average rents moved up by around 4.6 per cent quarter-on-quarter.

The average rent in the suburban submarket rose slightly -- by 1.3 per cent quarter-on-quarter -- to S$5.64 psf per month.

Vacancy rates for Grade A office space is also improving -- dropping to 3.7 per cent in the second quarter from 5.0 per cent in the first quarter.

Vacancies at Marina Bay shrank to 3.6 per cent in Q2, from 5.6 per cent a quarter ago and 12.1 per cent a year ago. Raffles Place had an overall vacancy rate of 5.5 per cent, while Shenton Way's vacancy rate stood at 4.9 per cent.

Experts said diversity in the tenant pool has helped fill the office space.

"Long gone are purely financial institutions," said Desmond Sim, associate director of CBRE Research. "You have complimentary services like insurance, you've got legal all coming in to take up Grade A stock within Marina Bay and Raffles Place."

Also helping the office rental market is the limited new supply coming to the market.

Mr Sim said: "This year, we have the Asia Square Tower II coming on stream. Next year, we have CapitaGreen that will come on stream. Then we actually have a break of no Grade A product coming in 2015.

"So if someone is trying to take advantage of the current low Grade A rents, they might realize the Grade A stock coming online is quite limited."

One place where vacancies are not falling is in the suburbs, where vacancies are expected to rise to over 8 per cent through 2014.

The suburban vacancy rate was 2.7 per cent in 2012, and is expected to rise to 6.0 per cent this year and hit 8.2 per cent in 2014.

Sigrid Zialcita said: "In the suburbs, we're going to see some massive projects delivered and add space, but again we don't think it's a huge concern for the market because the take up we've seen has been brisk, and going forward we see very healthy leasing occurring in this properties."

There will be more options, but not necessarily better prices, as experts said despite rising vacancies, rental rates in the suburbs will remain stable at around S$5.50 per square foot this year to 2014.

- CNA/al

- wong chee tat :)