Property prices to ride high on Thomson Line
Residents in the northern region of Singapore can expect the
announcement of the upcoming Thomson MRT Line to boost property prices
almost immediately, say consultants, although they differ on the extent
of the rise.
Homes in the Springleaf/Springside area will see prices rise by 10 per
cent at least. Prices will move, starting now; we do not have to wait
until the line is completed before prices go up. They will usually move
for a few months and then stabilise.
Broadly speaking, consultants BT spoke with expect home prices to spike closer to the completion of the line.
A near term price increase of 5-10 per cent is expected, with a price
appreciation in the range of 20-30 per cent when the MRT line is
completed.
That being said, prices of properties close to major construction work
sites may take a momentary dip to the tune of 5-15 per cent.
The area spanning Woodlands to Upper Thomson will likely see the
largest increase in price given that they benefit most from the
reduction in travelling time to town.
The Thomson MRT Line will be launched progressively in three stages
from the north to the south, with three stations from Woodlands North to
Woodlands South ready by 2019, six stations from Springleaf to
Caldecott ready in 2020, and 13 stations from Mount Pleasant to the
Gardens by the Bay fully operational by 2021.
However, there may eventually be less disparity in prices in different
parts of Singapore as the transport network improves connectivity and
reduces travelling time, said DTZ's Ms Chua.
The uplift on prices will progressively be less pronounced compared
with in the past when there were much fewer properties that enjoy
proximity to MRT stations.
Source: Business Times – 31 August 2012
Housing costs bother most US firms here
The cost of housing here has been irritating most US businesses in
Singapore although they are quite happy with personal security and a
stable government here.
According to the latest survey of senior executives from US companies
operating here, 77 per cent of respondents were dissatisfied with
housing costs in Singapore, making it the factor they were most
displeased with in doing business here.
This mirrors the findings of the survey from the previous year when the
exact same proportion of American business executives placed housing
costs as the factor they are most unhappy with in Singapore.
Labour and land costs were also factors that featured prominently on
their dissatisfaction charts. A total of 48 and 40 per cent of the
management of US companies here indicated that they were dissatisfied
with office lease costs and the availability of low-cost labour in
Singapore respectively, placing them as factors they were most unhappy
with after housing costs. The same three concerns topped last year's
list.
At the other end of the spectrum, US companies in Singapore feel much
safer and have greater confidence in government stability and
institutions here this year.
Personal security was the factor that most companies surveyed listed as
them being most satisfied with, with 96 per cent of respondents
indicating so. Last year, 84 per cent felt the same way.
Some 94 per cent were happy with the stable government and political system, against 89 per cent last year.
Overall, American companies here were satisfied with most of the
factors of doing business in Singapore - with the laws and regulations,
(lack of) corruption, tax structure, the movement of goods in and out of
the country, and the availability of trained personnel all performing
well in the survey.
Another area that US companies in Singapore raised concern about is the
ability to find adequate space in international schools here, with 38
per cent of respondents in Singapore believing it will be a significant
problem in the next 1-3 years.
Despite this, overall expatriate employee satisfaction among the
respondents remains high with 97 per cent of them indicating so, 85 per
cent of expatriates here wanting to extend their time in Singapore, and
75 per cent of US companies indicating they regularly receive requests
for assignments in Singapore from their staff in other locations.
Source: Business Times – 31 August 2012
Valuation suspense grips Pearls Centre
Consultants peg the market value of the strata-titled Pearls Centre in
Chinatown between $450 million and $600 million. One consultant
suggested that the government compensation may fall within this range,
or 5 to 10 per cent either side of the valuation.
According to Dennis Chiu, managing director of the Tang Group of
Companies, talk of launching the property onto the collective sale
market was floated about three months ago, and a sales committee was
formed recently.
Discussions were at a preliminary stage, and the committee was supposed
to select a valuer yesterday, said Mr Chiu, whose family controls the
Far East Consortium International Limited group in Hong Kong.
Tang Group, which is developing Dorsett Regency Hotel and Dorsett
Residence near Chinatown, owns about 47 per cent of Pearls Centre, which
spans some 47,000 sqm (about 505,903.3 sq ft).
Of this, about 17 per cent is office space, 43 per cent is shopping
space, and 10 per cent is residential. The remaining 30 per cent is
carpark space, said Mr Chiu.
According to a Singapore Land Authority spokesperson, compensation will
be pegged to the market value of the property, taking into account past
transactions, the condition of the property, and other reasonable
expenses including legal fees, relocation costs, and stamp duties.
Collective sales that do transpire tend to fetch a 20-30 per cent
premium over current market value. That being said, this property has a
leasehold tenure, so any premium depends on whether the government will
allow the current stakeholders to refresh their lease.
Retail units at Pearls Centre are transacting in the range of
$1,100-$2,500 psf depending on the size and floor on which the unit is
located. Residential apartments range from about $850-$1,050 psf.
Residential units on higher floors may fetch between $950 psf and
$1,050 psf while those on lower floors may fetch between $850 psf to
$950 psf.
Following the acquisition of Pearls Centre, the site will be integrated
with the adjoining state land for a high-density mixed-use development
to optimise land use around the future Thomson Line station at Outram
Park.
According to a spokesperson from the Urban Redevelopment Authority, the
gross plot ratio for both sites is 5.6. The total area after
amalgamating the land is around 2.8 ha (0.53ha from Pearls Centre and
2.29ha from the vacant state land).
Source: Business Times – 31 August 2012
