Complete Property Market Updates of Singapore

June 24, 2008

Singapore Master Plan: Achievements of the past 10 years

Filed under: About Singapore, General, Property Add Value, Regulators, Singapore Economy — Propertymarketupdates @ 3:59 am

THE Master Plan 2008 exhibition, launched at the URA Centre on May 23, is an important event for all here in the Urban Redevelopment Authority (URA). Not only is it the fruit of many months of brainstorming, discussions with various stakeholders and plain hard work, it also gives us an opportunity to share our excitement about the plans for Singapore’s future development.

For those unfamiliar with the Master Plan, it is the statutory land use plan that URA develops to guide Singapore’s development over the next 10 to 15 years. The Master Plan is reviewed every five years, and details the land uses and development intensities for land parcels in Singapore. It translates broader, longer-term development strategies formulated as part of the Concept Plan, which is the plan that sets the direction for Singapore some 40 to 50 years ahead. Both the Concept Plan and Master Plan work to ensure that there is sufficient land to cater to Singapore’s future needs, while maintaining a good quality of living for our population.

The launch of the Master Plan 2008 exhibition marks a significant milestone in URA’s history. Ten years have passed since the completion of the URA’s 1998 Master Plan. Though Singapore’s first statutory Master Plan was completed way back in 1958, it was the 1998 Master Plan that took planning one step forward by clearly spelling out a vision for Singapore in years to come.

For the first time, each plot of land in Singapore had a specific planning intention and development strategy. Changes in the Master Plan now signalled changes in the future landscape, rather than changes in existing uses on the ground. With the 1998 revision, the Master Plan became the forward-looking plan that we are familiar with today, a plan which enables land owners to make decisions with greater certainty.

As we prepare to complete and gazette Master Plan 2008, it would be interesting to review how successful our past Master Plans have been.

New commercial centres

Over the past 10 years, Singapore has developed new areas for businesses to flourish. Our vision for Marina Bay as an expansion of our CBD is being transformed into reality, as we speak. New developments like the Esplanade Theatres by the Bay, One Fullerton, Marina Centre, The Sail, the Marina Bay Financial Centre have been realised within the decade.

Beyond development of the city centre, these 10 years have also seen the growth of other commercial hubs. The Tampines Regional Centre, Buona Vista Sub-regional Centre (now known as One-North) and the Novena Fringe Centre are three such centres outside of the city centre being developed.

Both Tampines and Novena are now bustling commercial centres, with a mix of offices, retail and entertainment facilities that cater to the needs of residents in the eastern part of Singapore. One-North is an established hub for research, and looks set to become home to a dynamic blend of commercial, residential and recreational uses.

Thanks to this strategy to develop new commercial centres outside the Central Area, businesses now have a variety of locations to choose from, which are more affordable than those found in the city centre and which are well-suited to back-offices.

Flexibility for businesses

Another pro-business move by URA over the past years is to introduce more flexibility for businesses through new zoning policies that take into account changing business needs. New business zones, Business 1 and Business 2, were proposed in the 2003 Master Plan. Under the new zoning system, industrial and business activities are grouped according to their impact on the surrounding environment. The new ‘impact-based’ zoning approach allows businesses to house different uses under one roof and change activities easily without re-zoning.

Similarly, Business Parks and Business Park White zones were introduced, which facilitated the development of Changi Business Park and International Business Park which are now key employment centres.

URA also introduced a new type of zoning - the White Zone - which allows for the development of a variety of different uses like commercial, residential and hotel within the zone. This gives the market greater flexibility and creativity in planning for developments that provide a mix of uses like residential and retail. Today, several successful and innovative developments have been built on white sites.

For example, Central at Clarke Quay, built on a white site, is not only a busy shopping centre, but also pioneers the ‘Small Office Home Office’ concept here in Singapore by offering custom-built offices that function as residential units as well. Another white site that was successfully developed is Square2 at Novena. This development seamlessly integrates a medical centre with a trendy mall, and strengthens Novena’s position as a medical hub. Similarly, the white site in Farrer Park which was awarded in 2007, will see the introduction of a ‘mediplex’, which combines a hospital, hotel and specialist medical centre.

Good quality of living

Singapore has experienced substantial population growth over the past 10 years, from 3.9 million in 1998 to 4.6 million today. New housing had to be provided. Across the island, new HDB towns like Sembawang, Sengkang and Punggol have sprouted up to cater to the housing needs of our growing population. Since 1998, there have been 170,000 new homes created. We have also created a variety of housing choices, such as waterfront housing in areas like Tanjong Rhu. Industries in Bukit Timah and Hillview have also been relocated since the 1990s, and replaced with high-quality residential developments.

Recreation and leisure

Beyond housing, URA has also planned for the recreation and leisure needs of our population. As part of the Master Plan 2003, URA drew up the Parks and Waterbodies Plan and Identity Plan. The Parks and Waterbodies Plan set out proposals for an islandwide network of parks and park connectors. The park connector network has been implemented in stages, with the 42 km-long Eastern Loop running through Bedok, Pasir Ris and Tampines being completed last year.

The Parks and Waterbodies Plan and the Identity Plan also set out our vision for various areas like the Southern Ridges. As part of the Master Plan 2003, there was a proposal to connect the three Southern Ridges for a nine-km walk. This vision for a beautiful walk through nature has become a reality. Today, the Southern Ridges are linked by two bridges and an elevated walkway and are now open to the public.

More nature areas and nature parks have been opened up, in a sensitive way, for public enjoyment. Examples include Chek Jawa where the National Parks Board has completed the boardwalk, and the boardwalks, observation tower and suspension bridge opened at MacRitchie Reservoir.

The past decade has also seen the revitalisation of areas like the Singapore River. Through URA’s land sales programme and environmental improvement works, the three quays of the river are now popular nightspots offering a array of entertainment and dining options for locals and tourists alike.

Conservation

It has not just been a decade of unrestrained urban development, however. Even as condominiums, shopping malls and office towers are being built, pockets of Singapore remain carefully shielded from the pressures of development. The Identity Plan, created as part of Master Plan 2003, set out to conserve historical areas and buildings that have a special place in our hearts. In the past decade, 1,200 additional buildings have been conserved, in areas like Holland Village, Joo Chiat and Tiong Bahru. These buildings not only help Singapore’s streetscape to remain distinctive, they also provide our people with physical anchors for shared memories.

The next 10 years

Going forward, the Master Plan 2008 looks to build on the good foundations set by the past Master Plans. This time, the focus is on providing great opportunities and a good life. We have plans to develop new areas like the Jurong Lake District, Paya Lebar Central, Kallang Riverside, as well as continue growing Marina Bay as a 24/7 live-work-play environment. Tanjong Pagar and the Beach Road/Ophir-Rochor corridor will also be developed as strategic gateways to the city centre.

We also have an extensive Leisure Plan, which showcases a diverse range of leisure opportunities around the clock, island-wide, for people of all ages.

Our city’s achievements and the garnering of international accolades in the past decade bear testament to the strength of the vision for Singapore. However, this vision was not created solely by URA. It was drawn up together with other government agencies, private sector representatives and various stakeholders through focus group discussions, public forums and dialogues.

More importantly, the transformation of the past 10 years was achieved through joint efforts by the public, private and people sectors. The draft Master Plan 2008 exhibition, open to the public until June 20, is an opportunity for URA to gather comments and suggestions on these plans that will shape the way we all live, work and play in the years to come. Together, we can make Singapore a home of choice, a magnet for business, an exciting playground and a place to cherish.

By CAROLINE SEAH, head of physical planning and policies at URA

Source : Business Times - 29 May 2008

Tenants cashing in on rental flats

Filed under: General, HBD Reviews, Legal Ground, Regulators, Rental News — Propertymarketupdates @ 3:50 am

Heavily subsidised HDB units, which are much in demand, are often sub-let to foreigners

SOME tenants in heavily subsidised HDB rental flats have been illegally sub-letting their homes to cash in on surging demand for cheap accommodation.

There are no official figures but tenants in some estates say that as many as one in five rental flats is rented out to foreign workers - a clear breach of HDB rules.

The flats are often leased to workers from Malaysia, China and India - who are either unaware that they are renting illegally or do so because the units are the cheapest option.

Property agents and tenants told The Straits Times that there is an increasing number of such flats put up for rent by people keen to cash in on foreign workers’ demand for cheap housing.

A Malaysian, who declined to be named, told The Straits Times that she leases a two-room HDB rental flat in Toa Payoh with a friend for $700 a month.

That could be as much as $650 more than the subsidised rent - a tidy profit for the original tenant.

Their ‘landlord’ told them to keep windows shut and not to answer the door. The 35-year-old said she knew the deal was illegal but she was ‘desperate for cheap housing’, adding in Mandarin that ‘If I didn’t rent this flat, I can’t afford anything else’.

The abuse of HDB rental flats comes amid soaring demand for such homes, which are meant for needy Singaporean families.

The waiting list has shot up by at least 30 per cent over the past few months, with about 4,000 applicants in the queue. This translates to a 15-month wait, which is double the time in 2006.

Eligible Singaporeans can apply for HDB rental flats and pay $26 to $205 for a one-roomer and $44 to $275 for a two-roomer, depending on household income and other factors. The HDB manages about 43,000 such flats and plans to add 20 per cent more.

A Member of Parliament for Ang Mo Kio GRC, Ms Lee Bee Wah, told The Straits Times that residents had complained about the problem when she visited Teck Ghee last month.

‘People tell me their neighbours are renting their flats out. They should not be hogging the flats if they have an alternative place to stay,’ said Ms Lee.

When The Straits Times called five property agents last week, four said they had one- and two-room flats available for rent. Most of these flats would be rental units, said HDB.

And it is not just low-paid foreign workers renting such flats.

A Singapore permanent resident from Malaysia said he used to rent such flats as they were the cheapest on the market.

The 28-year-old finance executive rented a two-room subsidised flat in Owen Road for $550 in 2006. A similar unit on the open market would cost at least $1,000. Now, government-subsidised flats can fetch $1,000 in good locations, he added.

When The Straits Times visited Toa Payoh rental blocks last week, some tenants said they noticed an increasing number of workers from China and Bangladesh living in their blocks.

Coffeeshop worker Poh Lee Tee, 45, said her neighbour frequently rented out his flat to Indian workers, who kept her up when they came home from work.

‘But I don’t want to report my neighbours, in case I get into trouble,’ said Madam Poh.

Mr Wu Mu Song, 74, who has lived in one of the rental blocks for the past 30 years, estimated that two out of 10 flats are rented out illegally. ‘This is unfair; there are others who need these flats more,’ he said in Mandarin.

Although abuse of rental units is on the rise, Mr Wu said it was hard to catch illegal tenants as they often ignore visitors - including HDB officers.

Tenants illegally renting out their home can lose the flat and face a five-year ban from renting or buying HDB property.

The HDB recovered 17 flats in 2005 and 27 last year. The increase was due ‘to better public awareness and feedback’, it said.

It also conducts inspections at least once a year and carries out regular ‘enforcement blitzes’.

One blitz recovered 57 rental flats in three months in 2003 and 35 in a crackdown that began last year in areas like Tampines, Ang Mo Kio, Toa Payoh and Bukit Merah.

Anyone aware of illegal renting can contact the HDB at flw1@hdb.gov.sg. or call 6490 2410.

Source : Straits Times - 29 May 2008

Directors’ Trades: CapitaMall Trust

Filed under: Financing, General, Regulators — Propertymarketupdates @ 3:41 am

CAPITALAND CHIEF UPS DIRECT STAKE IN TRUST

CAPITALAND chief executive Liew Mun Leong has raised his direct stake in CapitaLand-managed CapitaMall Trust (CMT).

Mr Liew bought 148,000 units in CMT on Monday at an average price of $3.3736 each. He purchased 94,000 at $3.37 apiece and 54,000 at $3.38 each.

The transaction gave him a direct stake in CMT of 0.0089 per cent of its issued share capital.

He also has a deemed stake of 418,000 units, or 0.0251 per cent of the trust.

Last Thursday, CMT announced it was buying The Atrium@Orchard on Orchard Road for $839.8 million from the Singapore Land Authority.

The following day, CMT made its sharpest drop in almost four months, falling to as low as $3.30, after Moody’s Investors Service lowered its outlook for the trust from ’stable’ to ‘negative’.

Moody’s cited tighter conditions for borrowing as being one of the challenges faced by Singapore’s real estate investment trusts.

Credit Suisse last week reiterated its ‘outperform’ call on CMT in view of the company’s proposed Orchard Road acquisition. It described the acquisition as strategic in geographic terms, as CMT already owned the adjacent Plaza Singapura.

JPMorgan has also kept its ‘overweight’ call on CMT.

CMT units closed unchanged at $3.27 yesterday. They are down 5.49 per cent this year, compared with a 9.6 per cent decline in the benchmark Straits Times Index.

Source : Straits Times - 29 May 2008

Tian Hock wins Choa Chu Kang Drive tender

Filed under: Auction, General, Regulators — Propertymarketupdates @ 3:37 am

THE Urban Redevelopment Authority (URA) yesterday awarded the tender for a residential site at Choa Chu Kang Drive to Tian Hock Properties.

Tian Hock Properties, a unit of Far East Organization, was top bidder for the site at $116.01 million, or $203 per square foot per plot ratio (psf ppr).

The 99-year leasehold site has a maximum gross floor area of 572,600 sq ft.

On Monday URA closed the tender for the site, which attracted four other bids from companies such as Sim Lian Land.

Market watchers’ estimates of the breakeven cost of a new development on the site range from $550-$600 psf, translating to a selling price of $610-$650 psf.

Source : Business Times - 29 May 2008

Stansfield wins tenancy auction of its premises

Filed under: General, Regulators, Rental News — Propertymarketupdates @ 3:30 am

STANSFIELD Group yesterday won a Singapore Land Authority (SLA) tenancy auction, allowing it to continue leasing its existing eight-storey premises at 11 Penang Lane from SLA for a further period of up to nine years.

Stansfield’s winning bid was for $270,000 monthly rental for a three-year lease term, with options to renew for another two terms of three years each.

However, lease renewals for the second and third terms will be at market rentals at the time.

The $270,000 monthly works out to $7.96 per square foot (psf) based on the building’s gross floor area of 33,905 square feet.

Stansfield leased the building from SLA in May 2003 after the group won a public tender for a 3+2 year tenancy.

Before that, the building had been used by National Council of Social Service.

Knight Frank conducted the auction for the tenancy on behalf of SLA.

The $270,000 monthly rental that Stansfield will pay SLA for the next three years is over six times the $40,000-plus it was paying SLA under the lease that has just expired.

The group was prepared to bid high to ’spare our students the inconvenience and disruption that would have resulted had we moved to new premises’, Stansfield CEO Ramel Ang said when contacted by BT yesterday.

‘We are committed to the students and want to ensure continuity for them,’ he added.

Stansfield is suing the Consumers Association of Singapore over an alleged breach of an agreement governing insurance payments that hampered its ability to bring in foreign students.

Since Stansfield’s existing 3+2 year lease for 11 Penang Lane expired on May 19 this year, the group has been occupying the building under a Temporary Occupation Licence issued by SLA.

Bidding for the building’s tenancy at yesterday’s auction began at a monthly rental of $76,000.

A total of 10 parties took part in the bidding, including other private schools and investors, some of whom were keen to convert the building into a hotel, BT understands.

Separately, Knight Frank also sold two properties at its auction yesterday at Amara Singapore.

One was a four-storey building at 466 Serangoon Road, which was sold on behalf of its liquidator, for $3.2 million.

The 999-year leasehold property, which is currently tenanted, has a shop on the ground level and apartments on the upper floors. The total net lettable area is 7,061 sq ft.

The other property sold was a 1,399-sq-ft ground-floor shop unit at the freehold Tembeling Centre in the East Coast area, that fetched $1.31 million.

Source : Business Times - 29 May 2008

Mid-tier, upscale hotels faring best: STB figures

Filed under: General, Hotel, Regulators — Propertymarketupdates @ 3:25 am

MID-TIER and upscale hotels have fared best among different types of hotels in the current tourism boom.

The Singapore Tourism Board (STB), releasing the latest tourism statistics here, has grouped the hotels into four classes and released figures on their performance for the first time.

The four are:

Luxury hotels: those in prime locations or historic buildings (4,500 rooms);

Upscale hotels: boutique hotels and those in prime locations, charging slightly lower rates (12,400 rooms);

Mid-tier hotels: those in commercial zones (9,500 rooms); and

Economy hotels: those with budget rooms in outlying districts (3,800 rooms).

The STB declined to cite examples of hotels in each category, but going by its descriptions of each, luxury hotels include the likes of The Ritz-Carlton Millenia; upscale ones include Orchard Hotel; mid-tier hotels cover Link Hotel in Tiong Bahru and economy hotels include Hotel Bencoolen.

Going by STB figures, upscale and mid-tier hotels did best in average room occupancy, average room rate and revenue per available room last month.

Among the four categories, upscale hotels saw the biggest jump in revenue from each available room - 27.9 per cent - from a year ago. Revenue per available room is calculated by multiplying average room occupancy by average room rate.

Mid-tier hotels had the biggest increase in average room rates, up 28.2 per cent over last April’s.

Mr Colin Tan, director of research and consultancy at Chesterton International, said the sound performance by mid-tier and upscale hotels could have come from the room crunch and higher demand for these hotels.

The average hotel occupancy rate stood at 84 per cent last month, at an average room rate of $254. Hotels are expected to earn $186 million from their rooms, up 30.1 per cent from last April.

Knight Frank director of research and consultancy Nicholas Mak, noting an uptrend across all four hotel categories, said that, by releasing such data, the STB is helping investors judge the industry’s state and decide which categories are worth putting money into.

Chesterton International’s Mr Tan surmised that the recent ‘no-bid’ situation for a 0.9ha Little India hotel site could have spurred the STB to make this information part of its monthly updates.

The plot above Little India MRT station made the news last week as the first instance in seven years where a government land tender failed to draw bids.

Mr Tan said one reason could be that the site is suitable for mid-tier or budget accommodation and developers had the idea returns on these types of hotels are lower.

However, he added, with STB information that all sectors are doing well, investors may be spurred to take up non-prime land to build non-luxury hotels.

The STB confirmed it made the data available ‘to facilitate their business and investment decisions’.

Fuelling the growth of hotels is a rise in the number of tourists. Last month was another sterling month, with 826,000 arrivals: Indonesians led the charge with 131,000, followed by 107,000 Chinese, 63,000 Australians and about the same number of Indians, and 53,000 Malaysians.

Source : Straits Times - 28 May 2008

June 21, 2008

Surbana wraps up 2 Qatar masterplan projects

Filed under: General, Regulators — Propertymarketupdates @ 8:12 pm

SINGAPORE-BASED Surbana Corporation yesterday said it had completed two masterplan projects in Qatar, one each for the municipalities of Al Wakrah and Al Khor.

Both projects, by the Surbana Urban Planning Group, were awarded last year by Qatar’s Urban Planning and Development Authority and launched recently.

The detailed masterplans, to be implemented over a 25-year period, maps out the land use and zoning for the two municipalities taking into account the need for infrastructure, residential and commercial spaces, transportation networks and environmental concerns.

Surbana said in a press statement yesterday that they were presented to the Qatari government in March this year. Residents from both municipalities as well as various government agencies were invited to give feedback.

Both municipalities are near Qatar’s industrial hubs with Al Khor in the north and Al Wakrah in the south.

The vision is for these areas to flourish as ultra-modern and vibrant cities with downtown precincts devoted to the arts and culture, family recreation, fishing and marina as well as heritage. There will also be a mix of commercial spaces, government buildings, educational institutions and residential enclaves.

Upon completion, the two municipalities will be able to house a population of 170,000 for Al Khor (1,552 sq km) and 600,000 for Al Wakrah (2,483 sq km).

Separately, Surbana said a project it designed clinched an award in Abu Dhabi last week. The Tourism Development & Investment Company, Abu Dhabi’s lead developer for tourism assets, took the Best Commercial/Office Project Award at the Cityscape Abu Dhabi awards for its waterfront headquarters.

The nine-storey building, scheduled for completion in 2010, has a series of eco-friendly energy conservation features.

Source : Business Times - 27 May 2008

Key player in Jade saga set to sell luxury home

Filed under: General, Land Sale, Regulators — Propertymarketupdates @ 8:07 pm

$13.8m price tag in Anthony Soh’s ad suggests he wants a quick sale

THE businessman caught out when his takeover of Jade Technologies descended into farce and recrimination has put his multimillion-dollar home on the market.

Dr Anthony Soh placed an advertisement for the plush house in The Straits Times classifieds section over the weekend with an asking price of $13.88 million.


ST PHOTO: ALBERT SIM

The home near the Singapore Island Country Club in leafy Windsor Park Road sits on 21,000 sq ft of sloping land and boasts a pool, badminton court and parking for up to 10 cars. The area is surrounded by the greenery of MacRitchie Reservoir.

The pricing probably indicates that Dr Soh is looking to seal a deal soon as similar-sized bungalow plots are being advertised for as much as $15 million.

But Dr Soh told The Straits Times that he is not selling because he is in financial difficulties. ‘I am selling because I want to clear all my outstanding housing loans with OCBC, and to downgrade to get out of the public eye,’ he said.

OCBC Bank was also caught up in the buyout drama. It was Dr Soh’s adviser, but resigned and has since found itself criticised by investors for its role in the mess.

The bank also made a report to the Commercial Affairs Department (CAD) about the buyout events.

Dr Soh, who bought the house in December 2006, said he was raising funds to also cover his expected hefty legal fees in relation to the Jade fiasco.

The doctor-turned-venture capitalist became Jade’s largest shareholder in June last year. His arrival boosted the shares, with investors hopeful that he would transform the firm and its loss-making precision engineering business.

The counter got a further boost when he launched a buyout offer for the firm in February.

But the positive sentiment turned sour when he abruptly withdrew his $117 million bid in April.

He told the Singapore Exchange that he had pledged millions of his Jade shares to Australian broker Opes Prime as collateral to get a loan.

But Opes collapsed, partly a victim of a falling Australian share market that exposed many of its clients to severe margin calls. Its creditors, Merrill Lynch and ANZ Bank, seized the shares held by the brokerage, including those pledged by Dr Soh.

The seizure meant he had insufficient funds to complete the buyout.

Many investors have been burnt. They were confident that the deal would succeed as Dr Soh had said he owned nearly 46 per cent of Jade. All he needed was 50 per cent plus one share for the deal to go through.

But as more details emerged, some have questioned if Dr Soh’s loss was just a hard-luck story. Doubts were also raised as to whether he really owned as much as 46 per cent of Jade when he made his offer.

Dr Soh’s move to sell his bungalow may be related to OCBC’s actions.

As the financial adviser in the deal, OCBC stated that he had enough financial resources to complete the buyout.

After the deal fell through, investors questioned how OCBC could make such a statement when his shares had been pledged elsewhere.

OCBC’s report to the CAD claimed that ‘in the course of our advisory assignment, a series of events had occurred which caused us to question the integrity of the representations which we have received’.

So where will Dr Soh and his family live?

He said: ‘I have two other properties but have not decided which one to move in to. The objective is to pay OCBC all my loans as all my three properties are mortgaged to it.

‘I am going to fight for my integrity and what I have lost. I will never be a quitter.’

Source : Straits Times - 27 May 2008

Bids for residential site fall short of expectations

Filed under: Auction, Developer News, General, Regulators — Propertymarketupdates @ 8:01 pm

URA closes tender after top bid of just $203 psf ppr for the 99-yr leasehold site

A RESIDENTIAL site in Choa Chu Kang Drive has attracted a top bid of just $203 per square foot per plot ratio (psf ppr), reflecting weak sentiment in the property market.

The Urban Redevelopment Authority (URA) yesterday closed the tender for the 99-year leasehold site, which has a maximum gross floor area of 572,600 square feet.


 
The tender drew five bids - Tian Hock Properties came out tops with an offer of $116.01 million, or $203 psf ppr.

This was 7.4 per cent higher than the next highest bid - from Sim Lian Land, at $108 million or $189 psf ppr. The lowest offer came from HHA Properties - at $80.2 million or $140 psf ppr.

Analysts had expected bids ranging from $230 to $270 psf ppr, or $131.7 million to $154.6 million in all.

‘The lower quantum of the bid prices is a reflection of the current subdued mood in the residential market, taking into account the current cautious environment and the relatively lacklustre take-up of new projects in the first four months of the year,’ said CB Richard Ellis Research’s executive director Li Hiaw Ho. But five bids reflect ‘fairly good interest in the site’, he added.

The director of research and advisory at Colliers International, Tay Huey Ying, noted the absence of larger developers such as Far East Organisation, saying this could be a sign of weak market sentiment.

While the bids for this site were ‘healthier compared with recent ones received for the Ten Mile Junction site’, Ms Tay also feels the bids were in ‘the lower range of expectations’.

A site at Choa Chu Kang Road and Woodlands Road, where the state-owned Ten Mile Junction currently sits, recently drew a top bid of only $61 million or $162 psf ppr.

Market observers believe that URA may nevertheless award the site. According to Ms Tay, the ‘bid price is fair under current market conditions’, and the project may result in a breakeven cost of about $550 psf and a selling price of $610-$620 psf.

Mr Li also reckons the top bid for Ten Mile Junction was ‘reasonably fair’. Based on the bid, he estimates a breakeven cost of $580-$600 psf, which would translate to a selling price of about $650 psf.

URA launched the tender for the Choa Chu Kang Drive site in March and will decide on a possible award after evaluating the bids.

Source : Business Times - 27 May 2008

HDB ‘lab’ paving the way for broadband vision

Filed under: General, HBD Reviews, Regulators — Propertymarketupdates @ 7:13 pm

Government agencies linked up in low-key tests to study disruption

SOMETIME in the near future in a HDB heartland, housewives will be able to download an entire Korean movie in mere minutes , instead of hours. Researchers at Biopolis - a biomedical science research & development hub - will be able to perform complex calculations previously handled by supercomputers on their laptops.

All thanks to a new fibre optic network that is being built in Singapore.

And four inconspicuous public housing blocks at Boon Keng and Commonwealth may hold the key to realising Singapore’s dream of upgrading to this new ultra-fast broadband highway.

Unknown to the public, the humble housing units collectively formed the centrepiece of a low-key, multi-agency trial to assess any disruption that could result from constructing the new Internet backbone.

BT understands the tests were initiated by the Infocomm Development Authority of Singapore (IDA) and that at least two other state agencies - the Housing and Development Board (HDB) and the Land Transport Authority (LTA) - were roped in.

The upcoming Next-Gen NBN (National Broadband Network) is a key part of the government’s plan to lay a new technology foundation that will serve residents and businesses for the next 25 years or more.

When fully-completed in 2015, the network will deliver blazing access speed of 1 Gbps (gigabit per second) and beyond to power new e-commerce applications and other bandwidth-sapping services like biomedical research and tele-medicine.

The main aim of the tests in Boon Keng and Commonwealth - carried out mostly in the second half of 2007 - was to determine the most efficient way of extending high-speed fibre-optic cables from their current end-points to individual apartment blocks and office buildings. This will complete the so-called ‘last mile’ needed to achieve the huge broadband speed boost.

Singapore already has an extensive underground fibre-optic network in place - owned by companies such as Singapore Telecommunications, StarHub and even SMRT - but it ends some distance from most residential and commercial buildings.

Cheaper copper cables tend to be used thereafter to connect offices and homes to the Internet, but this ‘last-mile’ connection is set to be replaced with fibre-optic links, based on two proposals IDA has received for the new network.

‘IDA worked together with fellow government agencies such as HDB and LTA and the trials involved the testing of innovative civil works techniques for Next-Gen NBN,’ an IDA spokesperson confirmed.

‘The trials were conducted by a contractor appointed by IDA and focused on the outside plant that did not include in-house rewiring. The intent of the trials was to explore innovative deployment techniques that could reduce inconvenience to the public and minimise disruption.’

This is an important consideration for the regulator, which wants to roll out the new network with minimal fuss. When StarHub first built its $600 million infrastructure to deliver cable TV and broadband services, road lane closures were common as laborious excavation was carried out to put the new cables in place.

IDA hopes advances in cabling techniques mean that people will have to put up with fewer disruptions this time around.

To achieve this, approaches that were tested included running cables and ducts through covered walkways and drainage systems rather than digging up roads, according to sources familiar with the project.

The trial results were shared with bidders for the new network. Feedback was positive and they felt that minimal disruption and inconvenience could be achieved, IDA said.

The eventual task of translating the experiments into real-life will rest on the shoulders of the winner of IDA’s recently-concluded Network Company (NetCo) tender.

The battle to land this mammoth contract is now between two consortiums incorporating all three local telcos.

The winning NetCo will be helped by government subsidy of up to $750 million to offset the heavy cost of building the network, which some industry watchers estimate to be $1.5 billion or more.

SingTel has submitted a bid as part of OpenNet, a group led by Canada’s Axia NetMedia, which includes two other members - Singapore Press Holdings and Singapore Power subsidiary SP Telecommunications.

StarHub has joined hands with MobileOne and Hong Kong’s City Telecom to make up the rival Infinity Consortium.

IDA expects to pick the winning Netco by the third quarter of this year.

Source : Business Times - 26 May 2008

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