Indian billionaire has Big Plans here (14 May 2009)

INDIAN billionaire Bhupendra Kumar Modi moved into his $15.46 million penthouse at Marina Bay yesterday and immediately set about unpacking some ambitious plans for his new home country.
The founder and chairman of conglomerate Spice Group - it has interests in telecommunications, technology, financial services and entertainment - has set up two funds worth more than $100 million to invest here.
The tycoon also wants to open a 24/7 'Hollywood meets Bollywood' entertainment centre at one of two floating crystal pavilions coming up at the Marina Bay Sands integrated resort.
Speaking to The Straits Times at his 63rd storey apartment at The Sail @ Marina Bay, Dr Modi said he plans to spend 'tens of millions' on the project and is in talks with Sands to either buy or lease a pavilion.
'We are getting designers from Hollywood and from Bollywood to design it,' he said, adding that the IR could use his design or do its own.
But the idea is to entice Hollywood and Bollywood stars to entertain crowds here on a regular basis.
Dr Modi, 60, also owns a film production company and wants to attract directors. Indian star Anil Kapoor has been lined up to act in a movie to be shot here.
The businessman, who relocated the global headquarters of Mumbai-based Spice Corp to Singapore last year, said he is here to stay.
His new home sprawls across 5,834 sq ft and has spectacular Marina Bay views that match the apartment's colour scheme of cream and baby blue.
Everything in the apartment - from the interior design, custom-made furniture, prints, paintings and even the coffee-table books in the living room - was planned by a design team from Beverly Hills, where he was based previously.
An integrated high-tech system ensures round-the-clock entertainment at a click.
Dr Modi is moving here with his family, but says his son Dilip, 33, who is the group president for global operations at Spice Corp, wants to stay on his own at a family owned apartment in The Claymore, a condominium in the Orchard Road area.
Dr Modi bought the The Sail apartment last August, but his investment took a huge hit with the slump in the property market here.
Unfazed, he said: 'It is a home. I am not here to sell it. I will be using it also to entertain people. That way, I can justify the cost.'
Dr Modi plans to hold meetings as well as parties at his penthouse. He even broached the idea of inviting girl band Pussycat Dolls to a party, although he does not know them personally.
While Dr Modi himself expects to spend about 100 days a year in Singapore, his penthouse - 'like a hotel suite' and a 24/7 entertainment zone - will be open 365 days of the year to friends, business associates and celebrities, he said.
Dr Modi said that his two new funds involve nuts and bolts investment strategy and their share of risk-taking.
One fund is a special-situation real estate vehicle. This will target half-completed projects here or projects that are delayed due to a lack of funds.
'The world is going through a special situation...you need people to take special risks,' he said. 'We are looking for 25 per cent returns...high risks, high returns. We are not looking for immediate returns. We are willing to wait two, three years.'
His team is assessing about 20 possible projects. Dr Modi said they are keen on joint ventures, and Marina Bay Sands is certainly on his radar screen.
He also said he is discussing a deal to buy a residential building in the eastern part of Singapore.
The other fund will focus on investment in entertainment.
'Singapore is very much the right place for me,' said Dr Modi. It is cosmopolitan, secular, very secure, has a growing population, well-connected.'

Weekend Launch for BelleRive off Bukit Timah (14 May 2009)

SING Holdings is launching its latest residential development, BelleRive, this weekend at indicative prices of between $1,325 and $1,464 per sq ft. The listed developer is also extending an interest absorption scheme to all buyers.
BelleRive, located off Bukit Timah Road between Balmoral and Robin roads, is a 15-storey apartment tower with a total of 51 units. Its two and three-bedroom units range from 958 sq ft to 1,679 sq ft.
The two penthouses, at 2,734 sq ft and 3,735 sq ft, each have a private roof garden, swimming pool and pool deck. The development boasts fittings and finishes from notable brands including kitchen appliances by Gaggenau and imported kitchens by Hoffen.
Project facilities include a swimming pool, barbecue area, children's playground and gymnasium. Project completion is scheduled for end-2010.
Sing Holdings chief executive Lee Sze Hao said yesterday that about 50 per cent of the freehold project was sold during a recent preview.
BelleRive is within walking distance of the upcoming MRT station in Stevens Road. It is also reasonably close to several schools including the Singapore Chinese Girls' School, Anglo-Chinese School (Barker Road), Raffles Girls Secondary School and St Joseph's Institution.
Sing Holdings' previous projects include 38 Draycott Drive, a high-end apartment block in the Ardmore Park area, and an office building named EastGate in the East Coast area.
Residential projects in the pipeline are Meyer Residence on the East Coast, an 85 per cent-owned project, and a joint-venture project called The Laurels at Cairnhill.

Singapore is Asia's Most Liveable City (26 Apr 2009)

SINGAPORE has risen six places in a global ranking of cities with the highest quality of living, overtaking cities such as Paris in France and Honolulu and San Francisco in the United States.
At 26th place, the Republic also surpassed all its Asian neighbours to be the region's best performer in the latest Worldwide Quality of Living Survey by human resource consultancy Mercer.
As the icing on the cake, Singapore also topped Mercer's list of cities with the best infrastructure in the world. It proved superior in various areas, including electricity and water supply, telephone and mail services, public transport, traffic congestion and range of international flights from local airports.
Although it is often taken for granted, infrastructure 'has a significant effect on the quality of living experienced by expatriates', said Ms Cathy Loose, Mercer's Asia Pacific global mobility leader.
The development of Marina Bay and Sentosa Cove as new waterfront living areas appear to have boosted Singapore's position in the rankings.
'Singapore already has excellent housing, but now its new ocean-front and seafront living options have allowed the ranking to move even higher,' said Mr Derrick Kon, Mercer's Singapore global mobility leader.
He added that the 'high-quality houses and apartments' that are available for rent and the 'excellent selection of appliances and furniture' for residents definitely helped elevate Singapore's quality of life.
The other factor that contributed to Singapore's higher ranking is the presence of 'many good schools' in the city, said Mr Kon.
'Singapore has always had a lot of good schools and international schools, but now there are also more private schools offering university degrees,' he said.
'If expatriates come here with their children, this is one area they would be looking at, and in Singapore they would have a lot of options, with international programmes and university programmes.'
Singapore's strong position in quality of life rankings such as these could stand the nation in good stead in the current financial crisis, said Mr Mark Ellwood, managing director of Robert Walters, another human resource consultancy.
With companies looking to cut costs, many are reducing the number of international assignments and localising their expat compensation packages where possible, which means not giving out the 'hardship' allowances or benefits that are offered to expats who have to live in cities with a lower quality of life.
'There is perhaps less of an argument these days that Singapore is a hardship posting, so you don't have to give many expat benefits in terms of additional bells and whistles,' said Mr Ellwood.
Singapore is the only Asian city on the top 100 list that managed to increase its ranking this year, with the rest largely maintaining their previous positions.
China's capital, Beijing, moved up three places from 116 to 113 due to public transport improvements stemming from the Olympic Games last year, but Bangkok in Thailand and Mumbai in India both dropped in the rankings amid worsened stability and security.
Globally, the Austrian city of Vienna overtook Switzerland's Zurich to boast the best quality of life this year. European cities continued to dominate the top positions in the ranking, amid a sprinkling of Canadian and American cities.

Lower-priced Landed Homes in Johor (26 Apr 2009)

Investors or people looking for retirement homes in Johor should be able to find attractive buys in the Malaysian state.
Mr Ivan Hoh, executive director of PropNex International, said Johor's proximity to Singapore makes it an attractive destination.
'Many aspire to own a landed property in Singapore which they can't afford, so the other alternative is to buy a house in Johor,' he said.
There is generally more demand for landed homes than condominiums in Johor, he added.
'As they have vast land, many prefer to live in a house with land versus paying a more hefty sum to live in a condominium. For about RM250,000 (S$104,000), you can get a decent terrace house of 1,500 sq ft. A condominium in a good location will cost at least RM350,000.'
Indeed, the lower prices compared with similar properties in Singapore are a huge draw.
Mr Lim Boon Ping, an agent with Johor-based Tiram Realty, said: 'Compared to Singapore or even other parts of Malaysia, Johor Bahru residential prices remain very attractive, thus making it a relatively cheap place to reside in.'
He cited the example of a single-storey terrace house in Taman Johor Jaya with a built-up area of 761sq ft.
'At its peak in 2006, transactions hit RM170,000 for a unit. Now, you can easily purchase one at around RM120,000.'
Knight Frank Research showed that 'movement of prices has been flat with no significant changes (in Johor's residential market)...the market is stable and does not show any sign of a 'bubble' scenario'.
Knight Frank also said rental rates and yields, which hover around 4 per cent to 5 per cent, are expected to come under pressure and show some downward adjustments in the near term.
Mr Hoh said: 'In terms of rental yield, a house in general will not be able to fetch as high a yield when compared to a condominium.
'As property prices have crept up over the years and rental rates stand still, the yields in Johor remain low, probably 3 per cent or 4 per cent.'
Malaysian property giant SP Setia has some projects in Johor.
Its Setia Indah project, for instance, has a range of units called the 180 Degree II. These are double-
storey terrace houses with a land area of 1,540 sq ft each.
Prices start from RM304,800. The development is expected to be completed in September.
SP Setia will soon launch Setia Eco Gardens, an eco-friendly development near the Second Link in Tuas. Its Visellia terrace units will have a built-up area of 1,926 sq ft onwards and are priced at $138,000 each.
Mr Eric Cheng, executive director of HSR Property Group, said of Johor: 'Singaporeans will have to drive only 10 or 15 minutes to get there on a weekend, and they will probably own a bigger land plot.
'But I think a true investor should wait and see. I think (they should) give themselves another good six months for the market to stabilise; I think it's still too early to judge.'

Sentosa Cove (25 Apr 2009)

CONSTRUCTION at Sentosa Cove is largely on schedule, but Sentosa Development Corporation (SDC) - which oversees the luxury residential enclave - has received a 'handful' of requests from developers to delay their upcoming projects, chief executive Mike Barclay told reporters yesterday.
SDC has granted an extension to one developer and it is reviewing requests from others. It will consider requests on a case-by-case basis, Mr Barclay said.
And in a few cases, land-owners have had to pay liquidated damages - which is essentially a penalty - for taking slightly longer than the maximum time allowed to develop the sites they bought. The penalty comes to 2 per cent of the land purchase price for each month's delay.
Buyers of land plots meant for landed homes are given four years to complete building on their sites, while buyers of condominium and commercial plots are given up to five years. So far, no major delays have been seen, SDC said. With most construction on track, Sentosa Cove should be home to some 2,100 condominium units and landed homes by 2014.
While some 2,500 homes could have been built on the Cove, some developers decided to combine land plots or build larger units, which means that the enclave will have fewer units than it could have.
To date, there are some 1,700 people living in Sentosa Cove in about 400 homes. More than 30 condominiums and landed properties have received their temporary occupation permits (TOPs).
This includes condominiums such as The Berth by the Cove and The Azure. Overall condo occupancy at projects that have achieved TOP now stands at about 70 per cent, according to data from SDC.
The number of people who have set up home in the Cove is expected to climb as another 60 projects are expected to get their TOPs over the next six months.
'With more TOPs on the way, our live-in population is set to swell to about 3,000 by the end of 2009,' said Mr Barclay.
About 840 homes - comprising 140 landed units and 700 condo apartments - will be ready by the end of this year, up from about 400 now.
Sentosa Cove comprises of North Cove and South Cove. Land parcels in the North Cove were launched first.
'By the end of the year, 85 per cent of the projects within North Cove will have obtained TOPs,' said Jason Yeo, general manager for Sentosa Cove Resort Management. 'As for South Cove, the land sale was completed in 2008 and it is envisaged to be fully developed by 2014.'
The masterplan for Sentosa Cove was finalised in 1996, and land sales kicked off in 2003. All land sites were sold by 2008, with the total investment from land sales for the Sentosa Cove project coming to some $5.1 billion in total. Some 60 per cent of all buyers were foreigners.
With all land plots on the island sold off, Sentosa's management has now turned its attention to building a cohesive residential community.
Right now, Sentosa Cove is home to people from 21 nationalities including Europe, the United States, China, India, Australia and neighbouring South-east Asian countries.
'We are actively building a community life now and are committed to fulfilling our vision of delivering the world's most desirable address,' said Mr Barclay.
'Are we on track with our vision? The answer is yes,' said Jennie Chua, chairman of the Sentosa Cove Council. In recent quarters, property prices across Singapore (including Sentosa Cove) have tumbled and reports of construction delays have emerged. But this is due to a global economic downturn, Ms Chua said. In the longer term, Sentosa Cove still offers an attractive residential enclave for locals and foreigners, she said.

Homebuyers of 2007 at Risk (25 Apr 2009)

The island-wide price index in property recorded a plunge of 14.1 percent in Q1, slightly higher than 13.8 percent flash estimate.

To date, this is considered the worst decline for a quarter. It is also worse than the quarter-on-quarter decline of 13.1 percent in Q3 of 1998 when the financial crisis in Asia affected the residential market.

Prices of private homes have now dived for three straight quarters, having a total drop of 21.2 percent since the peak in Q2 of 2008.

According to URA, the index of private home property is now close to the level it had in Q1 of 2007. Hence, home-owners who bought their flats after Q1 of 2007 may be at risk of having property valuation fall below the price of their purchase. For those owners who had their properties on deferred payment scheme and still have to make a loan would have the price ratio of loan-to-purchase limited, which they can get from financing companies.

However, anecdotal evidence has shown that these buyers were capable of paying up the purchase amount that was not supported by the valuation. This was necessary to control some distressed sales.

Furthermore, although prices of private homes are still expected to be depressed, the decline rate is expected to become moderate from the peak of Q1 of 2009, as home developers have substantially marked the down prices. Mass-market of homes could expect more gradually averaging price corrections in the region by up to 8 to 12 percent for the following three quarters, as developers of units that were not sold and secondary market sellers could adjust prices close to current levels.

The high-end and mid-tier segments could see larger declines in average price ranging from 10 to 15 percent over the same period.

Mortgagee Sales Expects to Increase (25 Mar 2009)

MORTGAGEE sales - when repossessed homes are put on sale by financial institutions - have been few and far between so far but they are tipped to increase in the coming months.
The auction market remains weak but showed signs of life this month, said Colliers International yesterday.
There were 53 repossessed properties - 41 were residential - put up for sale in the first quarter, up 18 per cent from the fourth quarter last year.
Colliers said the rise may be small but it indicates an impending trend of continued growth, which is in tandem with the deteriorating economy.
Deputy managing director and auctioneer Grace Ng said a more significant number of mortgagee sales is expected later this year or next year.
'This is due to the lag time of approximately six months or more between when a buyer defaults on his loan repayments and when the bank repossesses the property and puts it up for auction sale,' she said.
Together with properties put up for sale by owners, there were 189 auctions in the first quarter but just 6 per cent were sold, up slightly from the low 5 per cent in the fourth quarter of last year.
Still, the value of deals rose and there were more transactions this month. Eight properties were auctioned off this month for a total of $12.955 million.
These transactions bring the total value done in the first quarter to $17.94million, up a striking 234 per cent from the fourth quarter.

When financial institutions put up some of the repossessed homes on sale, it triggers to increase in coming months

According to Colliers International, auction market is still low but shows signs of increase for this month, and the rise of mortgagee sales are small but may affect the impending constant growth in the market which is pair with the weakening economy.

There are 53 repossessed properties put on sale during the first quarter of the year, 41 of these are residential homes and an increases of 18% from the fourth quarter of 2008.

Grace Ng, auctioneer and deputy managing director says that significant mortgagee sales are expected to increase later part of the year up to next year.

“This is due to the lag time of approximately six months or more between when a buyer defaults on his loan repayments and when the bank repossesses the property and puts it up for auction sale,” Ng said.

Including the properties that put on sale by owner, a total of 189 actions are recorded during the first quarter of the year but only 6% are sold, a 1% increase from 5% in the fourth quarter last year.

However, the value of deal still increases and more transactions are noted this month. There are eight properties auctioned off this month for a total sale of $12.955 million.

The deals bring up a total value of $17.94million, a striking 234% from the fourth quarter.