Singapore Real Estate

MUMBAI: Zicom Electronic Security Systems today said it has entered into a joint venture with Singapore-based CNA Group to offer integrated building management solutions in the country.

In the joint venture entity, Zicom CNA Automation Ltd, Zicom would hold 51 per cent and CNA Group would pick up the remaining stake.

This move is in line with its business objective of accelerating growth to ramp up its strategic focus on developing expertise on integrated building management solutions and green buildings with control and automation, the company said in a filing to the Bombay Stock Exchange.

Integrated systems comprises building automation, security and fire products.

Under the arrangement, Zicom would provide financial assistance for all projects that are procured under the proposed Zicom CNA Automation Ltd and CNA would provide sales and marketing support.

“We are pleased to tie up with CNA to address growing demand of automation industry particularly intelligent building management solutions for large residential and commercial complexes in India,” Zicom Electronic Security Systems Chairman Manohar Bidaye said.

The demand in the real estate sector now is boosted by the changes in land legislation such as the removal of caps on foreign direct investment and a policy to set up special economic zones, the company said.

Shares of Zicom were trading at Rs 128, down 0.12 per cent on the Bombay Stock Exchange

Source: The Economic Times

Middle East investors tapping into South East Asia’s property markets are turning increasing attention to countries such as Indonesia and Vietnam, say the organisers of Cityscape Asia, part of the world’s largest business-to-business real estate event brand.

‘With the shifting of capital away from developed markets facing slumps, the unmet property demands in virtually all sectors in countries such as Indonesia and Vietnam offer investors growth opportunities not available in other markets,’ said Graham Wood, Exhibition Director for Cityscape Asia 2008 which takes place at Suntec, Singapore, 15 - 17 April 2008.

Cityscape Asia is an extension of the successful Cityscape Dubai organised by IIR Middle East. It is a joint venture between IIR Middle East and IIR Singapore, utilising the strengths of the global brand and expert local knowledge.

At the latter end of 2007, Cityscape Dubai smashed all previous records with 52,000 participants from more than 120 countries. Cityscape Asia is set to welcome more than 8,000 real estate professionals and host over 100 exhibitors.

Among Middle East investors taking an increasing interest in South East Asia is Limitless, the property arm of Dubai World, an exhibitor at Cityscape Asia, which is buying a $110m, 30% stake in three units of Indonesia’s biggest property developer by value PT Bakrieland Development.

‘Limitless is expanding in what is South East Asia’s largest economy,’ Wood added. ‘Fundamentally, Indonesia expects to shrug off the effects of a global slowdown with the country’s central bank forecasting growth of 6.2% this year after a 6.3% expansion in 2007′.

The Dubai developer is to work with Bakrieland on the Indonesian company’s Rasuna Episentrum, a residential and office complex in central Jakarta that Limitless can help market to overseas investors.

Less than an hour away from Singapore is Indonesia’s Bintan Island which welcomed 323,600 visitors last year, with one million visitor arrivals targeted by 2012. more…

The vast majority (more than 80%) of Singaporeans live in public housing. These homes are located in housing estates, where most are developed neighbourhoods with schools, supermarkets, clinics, food centres and recreational facilities. Popular neighborhood estates include names like Ang Mo Kio Town, Toa Payoh, Clementi, Yishun, Bishan, Hougang, Simei, Woodlands, Punggol, Bukit Batok,Tampines and others to the name. In short, they are called HDB.

Owning a home, a property in these places is a satisfaction. However, a buyer must consider factors before buying properties. It is the decision of the buyer to engage with real estate agents to handle transactions. Advantages of hiring the best real estate agents depend on its accreditation. STAR PROjECT is a member of The Singapore Accredited Estate Agencies (SAEA) Scheme was introduced in November 2005 to ensure that accredited agencies and agents are competent and proficient in their field, and are equipped with the necessary knowledge and skill to give advice and carry out property transactions and deals.

The scheme was initiated by the Singapore Institute of Surveyors and Valuers and the Institute of Estate Agents and is supported by the Ministry of Finance, the Housing Development Board and the Inland Revenue Authority of Singapore.

Individual agents must either have a degree or diploma in real estate studies, or passed a professional examination called the Common Examination for House Agents (CEHA).

And STAR PROjECT also possess a valid house agent’s licence issued by the Inland Revenue Authority of Singapore.

Aside from availing themselves to professional advice, clients of accredited agents will also have an avenue for dispute resolution (at the SISV Mediation Centre) should they encounter problems during transactions.

For more information visit Star Project’s site http://www.starproject.com.sg…

Simplify land use changes

The government’s decision to set up a task force to identify ways of providing affordable housing is very timely. Country-wide appreciation in real estate prices, together with high interest rates, has severely eroded affordability for a greater section of the population. The shortage of nearly 25 million dwelling units is primarily for the weaker and low income categories.

This section had found housing difficult even when real estate prices were down. At current elevated prices many in the middle class would have given up hope of owning a house. But even before we deliberate the policy response, it is important to define affordability. Does it mean providing housing to the economically weaker sections in the heart of the city? Also, does it mean outright ownership or rented accommodation?

The idea should be to provide people affordable housing at a reasonable distance from their work place. This is where public transport comes in. But the abysmal failure of public transport systems in most Indian cities has meant that people are forced to live close to their work place, which has created unwarranted demand pressure and high prices. The archaic land laws that make conversion difficult and discourage land pooling have further accentuated the problem.

Therefore, what is required is an integrated land-use and transport policy. Good public transport would help develop satellite towns where it may be possible to provide affordable housing through simpler measures such as subsidised loans as land prices would not weigh unduly on cost. This calls for a forward looking land-use policy and better planning. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has provided an incentive structure for states to put in place relevant reforms. We need to build on that. more…

SINGAPORE : The property market has gone on a bull run this year, and industry watchers believe prices will continue to climb in 2008, albeit at a slower pace.

Good demand sent property prices soaring this year. In the first nine months alone, prices rose by over 20 percent, double the increase for the entire 2006. Industry watchers said this level of optimism has not been seen since the late 1990s.

“Residential sales this year have hit a record high. We haven’t seen anything as high as this. The typical 10-year average is about 7,200-over private homes sold a year. This year, we are going to see more than double that figure,” said Nicholas Mak, analyst at Knight Frank.

“This market sentiment has greatly helped the local buyers. Mainly, I must say it’s fuelled by foreign investors, picking up many of the high-end condos. Likewise, we also witnessed a lot of foreign international funds, Middle Eastern funds, European funds and even some local investors picking up properties en bloc,” said Mohd Ismail, CEO of PropNex.

The spike in en bloc sale transactions has also contributed to the property boom. In the first half of this year, the Strata Titles Board received a record 45 collective sale applications, compared to 43 for the whole of 2006. more…

IT WAS probably the most profitable “flip” in the property market.

In a deal announced last week, GE Real Estate made a whopping 73 per cent profit on its initial $75-million investment, when it sold Anson House for $129.5 million, a year after purchasing it.

The 13-storey building, located at Anson Road, is now owned by a private property fund managed by Australia’s Macquarie Bank.

Analysts told Today the sale is a sign that in the booming local property market, price flipping — the practice of buying assets and quickly reselling them for a tidy profit — is expected to be the norm.Mr Donald Han of property consultants Cushman and Wakefield said he is seeing scores of investors putting their money in prime spaces in the Shenton Way area because the potential gain from a sale could be huge.

“Many investors we know have the intention of keeping their assets for a minimum of two to five years because the Singapore office property market has climbed 90 per cent rental-wise and capital values have almost doubled,” said the managing director.

Foreign financiers eyeing office space in the financial district have no qualms paying anywhere between $1,800 and $3,000 per sq ft in rentals, he added.

The new owners of Anson House, for instance, are paying about $1,701 per sq ft for a net lettable area of 76,127 sq ft.

As Singapore’s economy grows, so will property prices, said Ms Ong Choon Fah, executive director of global estate advisers Debenham Tie Leung.

And these escalating prices could be a godsend to developers, she added. “As these new owners take over, these older sites may also be given a chance to rejuvenate through renovations and the like,” said Ms Ong.

Even though a supply glut is expected by 2010, it is unlikely to affect “high-grade buildings” in the financial district.

“Investors are buying into quality and location, so, if there is going to be an oversupply, they can still rent them out without much of an issue,” said Mr Han.

But one analyst disagreed.

“That really depends on how fast the economy is growing, but when the oversupply cover comes, we believe rents could face downward pressures,” said Mr Nicholas Mak, the director of research and consultancy at Knight Frank.

It may look like a quick way to make a profit, but Mr Colin Tan of Chesterton International argued that these big investors usually come into a market armed with an exit plan.

“These include things such as the number of years they’ve been holding the property, and once their targets have been realised, they would seriously consider selling their properties.”

Such was the case with the Anson House sale, said Savills Singapore’s director of marketing and business development, Mr Ku Swee Yong.

“But, we can’t use the word ‘flipping’ for the Anson sale because funds like GE Real Estate are in for the long haul. They had only one asset here, so, they couldn’t say no when the right price was offered to them,” he explained.

Flipping prices or not, will this constant buying and selling ultimately affect rents in the long run?

“In the next 30 months, right up to mid-2010, you can be sure that rentals would continue to go up at a higher rate,” said Mr Ku. more…

SINGAPORE : Sales of new private residential homes in Singapore look set to plateau this quarter.

According to the Urban Redevelopment Authority (URA), 593 units were sold in November, up by about 5% from the previous month.

Market watchers said they expect overall prices to rise by 5-8% for the last quarter of this year. This will bring the full year price increase to between 27% and 30%.

Based on the latest figures, analysts said they expect the number of units sold this quarter to fall below 2,000, compared to 5,129 in the second quarter and 3,450 on the third quarter.

Analysts said the withdrawal of the deferred payment scheme took some wind out of the market, but strong economic fundamentals meant the mass market segment will see strong interest well into 2008.

“I think we’ll probably be in a region of about 5-8%, in terms of the increase (in price) for the fourth quarter. That brings the overall close to about 30% and I think that’s still respectable, considering that the main movement of the market came about during the first 7 months of this year,” said Donald Han, Managing Director of Cushman & Wakefield.

In November, 80% of the units sold were in the mid-tier or mass market segments. This follows from October, when there was a more than 50% drop in the the number of units sold in the core central region. more…

SINGAPORE (Reuters) - LaSalle Investment Management is raising investment in Asia over the next three to four years to up to $20 billion as investor appetite for the region grows despite a credit squeeze, an executive said on Friday.

The firm, which manages about $47 billion in assets including private real estate and publicly listed property securities, is upbeat on Asia as the region has remained largely unscathed from the U.S. subprime mortgage crisis that has dented business and consumer confidence elsewhere.

“Even with all the uncertainty in the global debt markets, we still see opportunity in this part of the world and are confident in raising more money,” David Edwards, the firm’s regional investment strategist for Asia Pacific, told Reuters.

“We expect that at least half of our investment will be in Japan but we don’t make specific market allocations,” he added.

LaSalle raised more funds for direct real estate investment in the region after saying in August that it would plough $15 billion in the next three to five years to buy and develop property in Asia. more…