Complete Property Market Updates of Singapore

1st phase to last till end-2009, but delays to traffic will be minimal

WORK will begin on Monday to widen the Central Expressway (CTE), but officials say the construction will cause minimal delays on Singapore’s busiest thoroughfare.

The Land Transport Authority (LTA) will add a fourth lane on both sides of a 1.5km stretch between Ang Mo Kio Avenue 1 and Ang Mo Kio Avenue 3.

The work, which will cost $16.9 million, is scheduled to last till the end of next year. The LTA said for most of that time, the expressway’s six lanes will remain open.

However, it will close after 11pm on some nights for repaving and to remove an overhead pedestrian crossing.

This is the first phase of a plan to ease congestion on the CTE, which is plagued by traffic jams during morning and evening peak periods.

The Ministry of Transport hopes the work, together with the opening of the Circle Line, Kallang-Paya Lebar Expressway and North-South Expressway, will ease congestion on the north-south stretch.

The LTA also plans to expand another 5.5km section of the CTE from the Pan-Island Expressway to Yio Chu Kang Road by 2011.

As part of the project, a new sheltered overhead bridge - replacing the old uncovered bridge - will be built to connect Housing Board blocks with the Serangoon Gardens private estate.

To keep the racket down, the LTA will use noise reduction blankets on its hoardings and put noise guards on machinery.

The authority will also use, for the first time, a more costly method of installing pipes running under the roads.

Unlike the usual ‘cut-and- cover’ method, where motorists have to be redirected to their lanes, the pipes are laid underground without the need to tear up lanes.

Source : Straits Times - 31 May 2008

Regardless of the market sentiment, the three “L’s” - Location, Location, Location - will always remain fundamental to the property sector. As such, it pays to know where the best real estate locations are likely to be.

And with the Draft Master Plan 2008 having outlined new key growth areas, hot spots and hubs, there is no guesswork required.

Source : Business Times - 29 May 2008

The area is set to evolve into the next prime area at the edge of the city, say NICHOLAS MAK and TEO JUNRONG

THE Kallang planning area, positioned along the picturesque Kallang River and within close proximity to the Central Business District (CBD), has enormous development potential. Made up of nine sub-zones, it covers a land area of about 920 hectares that includes 101 hectares of water body.

Taking sports to a new level: When the $1.2 billion Singapore Sports Hub is completed by 2011, it will add vibrancy to Kallang Riverside due to its close proximity to the area

Since the announcement of the 1998 Master Plan, planners have envisaged the Kallang area as an urban waterfront district. This vision includes it being a centre for sports, recreation and leisure with residential developments flanking the riverbanks. There were also plans to transform the Kallang planning area into a major commercial centre to capitalise on its proximity to the Central Area.

In particular, under the 1998 Master Plan, Kampong Bugis, a sub-zone of the Kallang planning area, was slated to be a transition between the Central Area and the sports and recreation areas at Kallang Basin.

High-density residential buildings along with recreational facilities will be orientated towards the river to take advantage of the waterfront view. Some of these plans have already materialised. Waterfront residential developments, such as Pebble Bay and Camelot, can now be found facing the Kallang Basin.

The latest Master Plan aims to build on the earlier vision for Kallang. The new planning sub-zone will be the Kallang Riverside, which refers to the areas on both sides of the Kallang River, bounded by Nicoll Highway, Kallang Road and Sims Way. With a total land area of 64 hectares available for development, Kallang Riverside is to be transformed into a new lifestyle district, offering waterfront homes with an exciting mix of retail and entertainment facilities.

In addition, the area will also be developed into a commercial hub outside the city centre, providing various business alternatives and employment opportunities. Kallang Riverside will embrace the nationwide vision to make Singapore a great city in which to live, work and play.

Work

As mentioned earlier, Kallang Riverside aims to become a major commercial hub outside the city centre. There will be over 200,000 square metres of new office space added to the area. Its proximity to the CBD will be an advantage, as it will provide an alternative location to the existing CBD. The resulting projected increase of 21,000 office workers in Kallang could provide the necessary pool of demand for the upcoming retail and entertainment outlets.

Live

Homes with waterfront views usually command a premium and the prices of some of these homes fall within the high-end price segment in Singapore. Distinctive waterfront homes within a lush park setting are planned to be developed on the western side of the Kallang River.

The proposed 4,000 new waterfront homes will have a range of heights to ensure that scenic views of the beachfront will not be obstructed. For instance, there will be varying residential plot ratios of 3.5 to 5.6 under the 2008 Master Plan for the area to the west of the Kallang River. Future developments can also adopt a resort-style design, to take advantage of the beaches and water edge location. These new homes could also be relatively more affordable and could be priced in the mass market and mid-tier segments.

In order to allow the water features and landscaping elements to seamlessly extend the lush park setting, developments here will be encouraged to go ‘fenceless’. This will be similar to one-north Residences, where such a fenceless environment was created to enable pedestrian connectivity and interaction among the community.

This will also pose challenges and opportunities for architects, as they need to create this seamless environment for the developments in Kallang Riverside without compromising on the security of the residents.

With the presence of the various live-work-play elements, together with its waterfront location and proximity to the CBD, these developments are likely to be attractive to homeowners and investors.

Kallang Riverside will also take advantage of its distinctive tropical character and surrounding water features by forming a substantial hotel cluster to cater to family and business travellers. Under the 1998 Master Plan, the area to the east of the Kallang River had been zoned for residential purposes. Under the 2008 Master Plan, the zoning has now been changed to hotel and white sites.

The hotel zoning will have plot ratios ranging from 2.1 to 3.5 while the white sites zoning will have plot ratios ranging from 1.5 to 4.9. There are plans for up to 3,000 hotel rooms available along the banks of the Kallang River.

Due to tourism initiatives such as the Formula One race, Youth Olympics and the integrated resorts, the number of visitors to Singapore is anticipated to rise over the medium term from the 10 million in 2007 to about 17 million by 2015. As a result, more hotels are needed to meet the rising demand. Tourists should find hotels along the Kallang Riverside an attractive choice, with their scenic views, proximity to the CBD as well as major tourist attractions.

Play

Kallang Riverside will go through a metamorphosis to become a new lifestyle hub, with a vibrant mix of retail, food and beverage outlets, and entertainment facilities. It is close to key attractions such as the Sports Hub and the Illuma entertainment centre.

Costing some $1.2 billion, the Singapore Sports Hub would be completed by 2011. The integrated complex includes a 55,000-seat capacity stadium with a retractable roof, a 6,000 capacity aquatic centre, a multi-purpose arena and over 41,000 square metres of commercial space. It will be Singapore’s premier land and sea sports, entertainment and lifestyle hub, hosting major international events and playing a critical role in taking sports in Singapore to a new level. Due to its close proximity, the Sports Hub is likely to add vibrancy to Kallang Riverside.

Illuma, located in the Bras Basah-Bugis district, is slated to be Singapore’s first urban entertainment centre. Spanning a site area of 8,921 sq m, the complex aims to provide an exciting mix of arts and entertainment facilities all in one location, drawing both locals and tourists alike.

Within the development, public spaces will be provided to serve as venues for street performances, bazaars and open-air concerts. Likewise, this upcoming project would be something that the residents in Kallang can look forward to.

With its sandy beaches, waterfront views, and close proximity to the city, Kallang Riverside is indeed situated in a unique spot in Singapore. As the Master Plan gradually materialises, Kallang Riverside will evolve into the next prime area at the edge of the city. The growing population in the area would provide the critical mass to support these upcoming residential and commercial developments. In time to come, Kallang Riverside might become one of the places in which residents can truly live, work and play.

The writers are with Knight Frank’s Research & Consultancy Department

Source : Business Times - 29 May 2008

OF ALL the changes made in the recent announcement of the new draft Master Plan 2008, those being effected within the Central Region in general and within the Central Area in particular would have the most telling impact on commercial land use in Singapore.

Marina Bay Financial Centre: About 44 per cent of the supply of new office space in Singapore will be in the new commercial area of Marina Bay, and would be of Grade A quality

The Central Area lies at the heart of the Central Region and includes the sub-zones of the Downtown Core, Singapore River, River Valley, Outram, Museum, Rochor, Newton and Orchard, as well as new areas for development comprising the sub-zones Marina East, Marina South and Straits View.

In the years since the last Master Plan in 2003, the Central Area has been evolving from a land use that was predominantly commercial to include a wider diversity of other uses, such as residential, lifestyle/entertainment and recreation. Yet, despite the influx of uses that were not typical to the Central Area 10 years ago, it is the commercial elements (especially the office sector) within the Central Area that look poised to grow in terms of both quality and quantity.

The confirmed supply of new office space in Singapore in the next five years is estimated to be about 10.2 million square feet and about 44 per cent of these new office buildings (Marina Bay Financial Centre, Marina View North Tower and Marina View South Tower) would be in the new commercial area of Marina Bay, and would be of Grade A quality.

In addition, 64 per cent of the future office supply islandwide would be Grade A buildings, undoubtedly raising the quality of office stock in the Core CBD, thereby contributing to the attractiveness of the city-state as a major financial centre.

At the same time, the Draft Master Plan 2008 provides the quantity of development space, as an additional 6.4 million sq m (69 million sq ft) of commercial space is planned for the Central Area in 10-15 years.

Rail network

A glance at the sites from the Draft Master Plan in the Marina Bay area shows that almost all the sites are ‘white’ sites, where mixed-used developments can be constructed.

Moreover, the plot ratios of the undeveloped sites range from 8.0 to 25.0, with most of the sites having a plot ratio of 13.0. These would mostly comprise modern office buildings, while at the same time suggesting that Marina Bay would have a diversity of uses that should see complementary retail space as well as residential homes. Therefore, offices with large floorplates, homes overlooking the 101-hectare Gardens by the Bay, or shops within walking distance of the entertainment highlights at the soon-to-be-completed integrated resort look set to transform Marina Bay.

In anticipation of these exciting changes, the government is also investing in significant infrastructure. In the LTA’s Land Transport Masterplan, the rail transit network would increase from the present 138 km to 278 km by 2020.

Not only will this make the rail network comparable to those in cities like New York and London, it would facilitate the injection of even more activity into the Central Area. It is envisaged that commuters would have access to a rail transit station within 400 metres, or five minutes’ walk, from any location in the Central Area, bringing people to an array of activities in the new downtown.

Not all the action will be in Marina Bay though as the Tanjong Pagar area south of the existing CBD will also be rejuvenated, and the Beach Road/Ophir-Rochor Corridor will house a number of varied mixed-use developments. The development of these areas would provide another tier of commercial facilities on the fringe of the CBD, supporting businesses that do not require a Core CBD location.

By LEONARD TAY, director of CBRE Research

Source : Business Times - 29 May 2008

We owe it to ourselves to give this culturally rich area our best shot - and preserve part of our heritage, says COLIN TAN

NOT many Singaporeans, especially younger ones, would know that Paya Lebar Central - the Master Plan area unveiled last week - was once a booming commercial hub.

Those of us who grew up in the area remember the old wet market at Geylang Serai as the heart of all the bustling activity. So it was amusing to see the area described in the weekend newspapers as a sleepy industrial estate. Apart from the city centre, it was one of the earliest and busiest commercial hubs in Singapore’s early history.

 
In the late 1960s and early 1970s, Paya Lebar boasted one of Singapore’s earliest department stores - operated by Emporium Holdings at the Haig Road-Geylang Road junction, next to the Lion City Hotel. The area was teeming with people - especially at night. It was lit by gas-filled halogen lamps from the stalls of street hawkers, which bathed the entire area in a warm, golden glow.

Although Singapore’s car population back then was minuscule compared with today, there were frequent traffic jams in Paya Lebar, even though most people either walked to where they wanted to go or took a trishaw.

The area was also home to Singapore’s first 24-hour supermarket at Tanjong Katong complex. But the concept was way ahead of its time. And once the novelty wore off, the supermarket drew fewer and fewer shoppers.

And time stood still in Paya Lebar as the forces of change started to exert themselves elsewhere in Singapore. The population of Paya Lebar was slowly relocated to new housing estates such as Chai Chee and Bedok, and onwards to Tampines. Shorn of its population base, the area went into a slow decline. So in a sense, the unveiling of the Master Plan for Paya Lebar Central is long overdue. The area has been forgotten for far too long.

Its key strengths are its proximity to the city, its cultural heritage and the fact that it will have an MRT interchange. Its main weakness is the absence of a large population base. The nearest housing estates are at Geylang East and Eunos, which are small compared with the likes of Bedok, Tampines and Ang Mo Kio. As such, Paya Lebar is not a natural hub.

Having an MRT interchange helps, but it is no longer such a big deal. Soon there will be many more interchanges - all competing for the same market. Similarly, being close to the city is an attraction, but there are plenty of competing areas that are even closer, such as Kallang and Lavender. On the other hand, places like Novena have a huge head start.

Where will companies locate their backroom operations at Paya Lebar? If it is too expensive to be in the city, why stop at the edge of the city where rents are only a shade cheaper? Why not go all the way to Tampines or Jurong East, where rents are not just affordable but way cheaper? Is Paya Lebar a place for SMEs? Maybe. If property prices shoot up with all the upgrading and new improvements, as some analysts suggest, we can forget about SMEs setting up offices there.

The edge that Paya Lebar Central has over other areas is its cultural heritage. Geylang Serai - which maybe the Master Plan area should have been named - can be to the Malay Muslim community what Chinatown and Little India are to the Chinese and Indians. Ironically, what gives these two areas their vibrancy is the presence of the large number of work permit holders from India and China. It lends the area much-needed authenticity. Many Singaporeans are Westernised, preferring Starbucks or McDonald’s instead of the traditional coffee shops or sarabat stalls.

Paya Lebar’s cultural heritage also means it has strong tourism potential. At the moment, the celebrations during the month of Ramadan attract few tourists. It is mainly a local event. The number of non-Muslim local visitors is dismal. Singapore and STB have already achieved a difficult task - getting the numbers to even come to Singapore. And if the two integrated resorts and the hosting of global events such as the Formula One race and the Youth Olympics mean many more people will come to Singapore, the next step then is to increase their average length of stay. Increasing the number of must-see attractions is one way.

While it has been decided to do away with the Malay Village, there should be efforts to find an alternative. Having a civic centre with designs inspired by traditional Malay stylistic elements is good. But expecting it to take off like it did in Toa Payoh may not be realistic, as there is not much of a population base in the area. We do not want the place to be alive only during Ramadan. The tourists, if they come, will help supplement the market.

Maybe a museum celebrating Malay culture and heritage in the region - similar to the Peranakan museum at Armenian Street - can be set up. In fact, the Peranakan museum may be relocated to Paya Lebar Central, as the nearby Joo Chiat area was once an area populated by Peranakans. Chinatown and Little India are slowly coming back despite the pace of Singapore’s modernisation. In the case of Paya Lebar Central or Geylang Serai, it will not be easy. But we owe to ourselves to give it out best shot - and preserve part of our heritage.

The writer is head of research and consultancy at Chesterton International

Source : Business Times - 29 May 2008