Singapore Property 101

Information on Singapore Real Estate, Market Views and Opinions, Site Development Updates. Single pool of Property related articles.

Difference between managing private and public flats

Posted by lohrenee on August 15, 2009

(Source : Asiaone, First published in The Straits Times)

I REFER to Monday’s commentary, ‘En bloc debate, HK style‘. Our laws are sufficient to run our private estates. In most management corporations (MCs), lobbying for support is prevalent where most members are inactive. Therefore, the estate is run by a minority, who are unpaid volunteers.

It is therefore natural that the active members will run the estate in their own interests. However, the law lays down strict requirements to document support obtained by lobbying, to ensure such lobbying is valid. This is laid down clearly in the First Schedule of the Building Maintenance and Strata Management Act.

This brings me to a point about the powers the management council has under the law, to compel dissenting owners to comply with the house rules of the MCs.

An application to the Strata Titles Board for an order is not costly. As long as a house rule is properly enacted, and owners are given ample notice of the enactment, a management council is not high-handed if it takes action to enforce the house rule as it is merely discharging its required duties.

High-rise living in a communal estate requires an owner to subject himself to the wishes of the majority. Our laws are sufficient to guide us in peaceful communal living. It is the management council’s practical rights that may need more care to execute.

If a council gives ample notice and details of properly conducted meetings, even if house rules were made with properly deposited proxies, as a member of the MC, one has to comply with these house rules so the estate can be run smoothly.

Unlike in public housing, private condo residents are free to make house rules for themselves, so long as these house rules are made with common sense.

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Bukit Panjang: From ‘no frills’ to amenities galore

Posted by lohrenee on August 14, 2009

(Source : AsiaOne, First published in The Straits Times)

ALL residents of HDB flats in Bukit Panjang constituency will have lifts that stop on every floor by November.

It caps a $100-million effort that has transformed the ‘no frills’ new town into a place with a string of amenities over 12 years, said Dr Teo Ho Pin, MP of the single-seat constituency. He cited a long list that includes markets, places of worship, gardens as well as ramps and railings for the elderly and handicapped to move about freely.

‘I’d say the town is almost mature with all the facilities,’ he said yesterday, ahead of a ministerial visit to the ward on Aug 30 by Transport Minister Raymond Lim, who is also Second Minister for Foreign Affairs.

The one still-to-come significant change that will spur new development is an MRT station, said Dr Teo, noting that the Bukit Panjang station is scheduled to be open in 2015.

It will give residents a direct link to the Central Business District.

But lift upgrading tops the ward’s infrastructure development list, with more than $80 million going towards such works for 132 HDB blocks.

The Government pays between 75 and 90 per cent of the bill and the remaining 10 to 25 per cent is split between residents and the Holland-Bukit Panjang Town Council.

Besides the changes, Dr Teo also introduced ‘green’ initiatives to promote a pleasant living environment and save energy costs.

Among them are two community gardens, where residents grow vegetables such as sweet potatoes or chye sim for their own consumption.

In addition, solar energy lighting panels were installed on the top deck of a multi-storey carpark.

Dr Teo also started a briskwalking club for residents to exercise and bond with each other.A challenge now, he said, is to maintain the facilities and manage the impact of inflation on costs. However, the town council finances are healthy, he added.

The change that is most important to residents like Madam Mariam Maidun, 50, is the lift upgrading. The housewife, who has lived in Bangkit Road for 10 years, appreciates it especially when returning home after marketing with her bags of groceries. ‘It’s much more convenient now.’

But she misses the stools that were removed from the ground floor of her block during the upgrading works. ‘Most old people or housewives coming back from the market have no place to rest,’ she said.

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An Elite Investment Gets Its Day In The Sun

Posted by lohrenee on August 13, 2009

(Source : The Business Times)

The Good Class Bungalow (GCB) market has sprung to life with high-net-worth individuals stepping up their purchases.

July was an especially action-filled month which saw about 20 GCB transactions worth a total of more than $300 million. To put this in perspective, the entire first quarter of this year saw GCB deals worth only $27.5 million.

The action picked up in April, when $56 million worth of GCBs were transacted. It gathered pace in May and June, each month seeing deals amounting to around $188 million. In July, the market went ballistic.

So far this year, around 50 GCB deals have been transacted, according to caveats data compiled by property consultants and information on the latest transactions obtained by BT.

The year-to-date tally of over $800 million is healthy, considering that the whole of last year saw just 51 deals worth $830 million.

GCB agents expect the sales flow to continue in coming months. CB Richard Ellis’s director, luxury homes, Douglas Wong said: ‘It’s likely that a total of 60-65 GCBs will be sold in the whole of 2009 – more than the 51 GCBs sold in 2008. The total quantum is likely to be around $1.1 billion to $1.2 billion, about 35-45 per cent higher than the quantum of $830 million in 2008.

Savills Singapore director of investment sales & prestige homes Steven Ming says that ‘although we do not expect the spike in GCB sales that was seen in May to July to be sustained, we do expect to still see healthy buying activity continue for the rest of the year’. He expects 60-70 transactions for the whole of 2009.

Apart from the general feeling that the worst of the financial crisis is over, he cites the low mortgage and deposit rates as reasons for the GCB market revival.

Agreeing, Newsman Realty managing director KH Tan notes that high-net- worth individuals prefer GCB investments to letting their cash idle in banks. They are also wary of investing in financial products following the Lehman debacle, he said.

‘Another group of GCB buyers are foreigners who have become Singapore PRs and PRs who have become citizens,’ adds Mr Tan, who recently brokered the $38 million sale of a Cluny Park bungalow.

BT understands the property was sold by former Kim Eng Securities managing director Douglas Ooi to a buyer who also picked up No 3 Cluny Hill earlier this year.

‘When the IRs (integrated resorts) are ready, even more rich people from overseas will come to Singapore and become citizens. Some would be interested to invest in the GCB market,’ said Mr Tan.

Typically, one has to be a Singapore citizen before one can own a GCB. However, PRs are known to have been given permission by the government on a case-by-case basis to buy small GCBs with land areas of about 15,000 sq ft, depending on their contribution to Singapore, according to Mr Tan.

Major GCB deals in recent months include a site at Dalvey Road said to have been sold by a certain Thomas Chan Ho Lam, for $27.01 million. Interestingly, a person with the same name is also understood to have bought a bungalow at Belmont Road for $30.5 million last month from Ong Kok Thai, managing director of Vanguard Interiors and the Peranakan Place Group.

Meanwhile, GuocoLand chairman Sat Pal Khattar is believed to be the seller of a bungalow at Rochalie Drive, which fetched $18.32 million. BreadTalk founder and chairman George Quek is reported to have sold his 2 Swettenham Road bungalow for $29.2 million to developer Simon Cheong.

The GCB market peaked in 2006 with $1.23 billion of transactions involving 119 deals. The following year saw 87 deals for a total $1.15 billion, according to CBRE figures. In the first seven months of this year, 47 deals totalling $710 million took place, CBRE said.

However, BT has learnt there are about six other transactions not yet captured in caveats, located in places like Belmont and Leedon roads, Maryland Drive and Astrid Hill. If these were to be included, the year-to-date tally would cross $800 million.

GCBs are the creme de la creme of Singapore’s housing market, with stringent planning requirements.

There are only about 2,400 such bungalows in Singapore’s 39 gazetted GCB Areas.

Mr Tan estimates GCB prices could increase about 20 per cent on average over the next 12 months.

Says Savills’ Mr Ming: ‘GCBs, being limited in availability, are a highly sought-after investment among the well heeled. As more rich are created, demand for these exclusive bungalows will gradually outstrip available supply for sale.’

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Singapore property market booms despite deep recession

Posted by lohrenee on August 12, 2009

(Source : AsiaOne)

SINGAPORE – Recession? What recession? Despite Singapore’s worst economic slump since independence, the residential property sector is in the midst of a new boom reminiscent of 2007, when the city-state was known as the world’s hottest real estate market.

Greed and its twin brother fear are back in play as punters stake out condo launches days before sales open, with some offering blank cheques to pre-book flats, prompting the government to hint it may have to cool things down.

“Some of the practices and habits that you saw in the last property boom are beginning to come back, so I think we’ll have to be careful,” said Minister for National Development Mah Bow Tan, whose portfolio includes housing.

“A little bit of speculation is inevitable in every market, but when it becomes excessive, then it is something that we should try to avoid,” he said. The minister’s words of caution fell on deaf ears.

A 297-unit condo called Optima in the extreme east – well outside prime districts – sold out in within three days in early August after Mah’s warning, fetching as much as two million Singapore dollars (1.38 million US) a unit.

The developer had to issue ballots “to address the needs of the genuine buyers” and disperse the huge crowd that turned up for the launch of the project, which will only be ready for occupancy in 2014, a spokesman said. Within days, some units were already being advertised for resale in the secondary market.

An AFP reporter who recently walked into the sales office of another high-rise condo being built close to the Orchard Road shopping belt was treated like royalty by agents expecting to close deals within days, if not hours.

Bank officers were ready to process loans on the spot.

“Buy before prices go up further,” an agent whispered in his ear, gesturing to a “sky garden” bisecting the scale model of a glass-clad, 45-storey tower.

Singapore’s economic output is officially forecast to shrink by four to six percent this year – less severe than earlier estimates, but still its worst economic performance on record – and office rents are still soft, reflecting weak business activity.

“It is too early to celebrate,” Prime Minister Lee Hsien Loong warned over the weekend as he spelled out the country’s economic prospects. “The outlook remains clouded.”

The property frenzy began in middle-class condo projects due to pent-up demand from families upgrading from public to private housing but scared off by the 2007 price spiral.

Their enthusiasm quickly spilled over to more exclusive developments. Prices of luxury condos – the segment worst hit by the recession – are now inching toward peak levels achieved around mid-2007, according to an analysis by business weekly The Edge.

Foreign investors, including Asians looking for a secure place to park their money, are also back in the Singapore market.

Singaporeans enjoy one of the world’s highest savings and home ownership rates, but most live in relatively spartan government-built flats, making owning condos an obsessive goal for families.

A pension system forces them to save more than a third of their monthly income, and the accumulated funds can be tapped before retirement to buy property, creating a massive pool of financing ready to be used when market conditions are good for buyers.

Chua Chor Hoon, senior director and head of Southeast Asia research at property advisers DTZ Debenham Tie Leung, said various factors combined to spur renewed buying in Singapore properties.

Signs of economic recovery, the stock market rally, the imminent completion of massive casino resorts, low interest rates and lack of confidence in complex financial products encouraged property buyers.

Asked if the government will have to intervene to stop a bubble from forming, she said: “There’s froth but no excessive speculation.”

“The government is likely to increase the supply of housing units through the sale of government land and monitor the situation first.”

Chua Yang Liang, head of Southeast Asia research at Jones Lang LaSalle, said demand is largely driven by buyers upgrading from government housing due to strong wealth creation in recent years, and the shrinking gap in cost between public and private housing.

“However, unless we begin to record positive growth in the larger global and domestic economies, the recent spike in demand and prices is short-lived and could cause asset driven inflation in the longer term, especially if wage increases do not keep pace,” Chua added.

“In our opinion, there isn’t enough compelling reason for the state to want to interfere into the market phenomenon just as yet, unless it affects the overall affordability for the masses and causes asset-driven inflation in the economy,” Chua said.

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Kebun Bahru station? Where’s that?

Posted by lohrenee on August 10, 2009

(Source : AsiaOne, First published in The Straits Times)

THE proximity of MRT stations to new housing projects has long been a selling point when developments are launched, and it is common to find condominium advertisements displaying ‘nearby’ train stations.

But a couple of developers have taken the sales pitch one step further: by pinpointing the sites of MRT stations which have not been confirmed.

In UOL Developments’ recent advertisement for Meadows@Pierce, a freehold condominium project in Upper Thomson Road expected to be ready around 2012, the developer ran a map showing station sites of the future Thomson Line, which will only be completed in 2018.

These include ‘Springleaf’, ‘Kebun Bahru’, ‘Venus Drive’ and ‘Sin Ming’ stations.

Another major developer, Far East Organization, showed the location of a ‘Marine Parade MRT’ station in an online page for its Silversea condo. The east coast development is expected to attain TOP in 2014.

The station is supposedly part of the Eastern Region Line, which will be completed in 2020.

The Land Transport Authority has not confirmed the alignment of the new rail projects, much less the location of stations. An LTA spokesman dismissed the developers’ information as ‘wild guesses’.

Far East Organization declined to comment; but Ms Claire Cher, spokesman at UOL Group, parent company of UOL Developments, said it got the location and names of the stations from singeo.com – an online map service.

According to the website, the names and locations of the supposed Thomson Line stations were suggestions from users.

Ms Cher nevertheless stood by the advertisement, saying ‘we’re not misleading, because we put the word ‘planned’ under each of the station site’.

The Consumers Association of Singapore does not quite agree.

Case executive director Seah Seng Choon said that it fell short of the advertising industry’s code of practice, which dictates that all advertisements should be ‘legal, decent, honest and truthful’.

‘In this case, the sites of the MRT stations as indicated in the advertisement are questionable when the LTA has not confirmed them. As such the advertisement could be misleading.’

Other developers interviewed said it is an occasional practice among some players to include hypothetical sites of new stations in their sales materials – although some frown upon it.

Mr Gerry de Silva, head of group corporate affairs at City Developments, said his company does not resort to this.

Ms Sarah Jane Smith, spokesman for SC Global Developments, said her company has never had to do so because ‘all our properties have been very centrally located, so all MRT stations and lines are well established’.

The inclusion of transit stations in property ads is tightly controlled in advanced countries. In Japan for instance, the Real Estate Fair Trade Council says ‘future lines or stations are not allowed to be presented in sales collaterals unless the plan is already announced to the public by the transportation company’.

Even so, the line’s planned start of operation has to be clearly stated. And the walking distance between MRT station and development has to be made known.

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Banks Woo Home-Buyers

Posted by lohrenee on August 10, 2009

By Francis Chan

(Source : The Straits Times)

THE recent surge in HDB and private home sales has seen a pick-up in the pace of lending among banks, which have come up with new and innovative loan products to lure home-buyers.

Compared to the first quarter, the second quarter saw the number of approvals more than doubled, said Mr Gregory Chan, head of consumer secured lending at OCBC Bank.

‘We continue to see double-digit growth in sales, with a 30 per cent quarter-on-quarter increase in new mortgages as of Q2 2009,’ said Mr Dennis Khoo, general manager of retail banking products at Standard Chartered Singapore.

Banks are introducing more variations in their loan products, not only to seize market share but also, in part, to avoid the old ‘How-low-can-you go?’ war of interest rates.

‘The best mortgage is not necessarily the one with the lowest interest, but the one that best suits a customer’s needs,’ said Ms Sherry Leong, business head for home financial services at Citi Singapore.

‘We consider it important to offer product innovation and differentiation along with good after-sales service that is relevant to our customers’ needs.’

The Straits Times surveyed seven lenders and found many variations of the traditional fixed- or floating-rate mortgages. They include loans that allow changes in loan tenures, offer loyalty discounts, and even a few that earn interest like a savings account.

For example, United Overseas Bank’s latest HomePlus loan allows customers to earn the same interest rates on their deposits – of up to 75 per cent of their outstanding loan amount – in a separate bank account.

According to UOB, customers have the option of using the interest earned to offset their loan’s interest.

Promotional rates for UOB’s HomePlus are now at 1.5 per cent for the first year, 2.99 per cent for the second and 4.5 per cent for the third. But depending on the deposit amount maintained in an account with the bank, an implied interest rate on the home loan can be as low as 1 per cent in the first year and up to 3 per cent in the third year, said UOB.

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Project may add to charms of Seletar Hills

Posted by lohrenee on August 9, 2009

(Source : The Business Times)

LOOKING for a new condominium project nestled in the quiet Seletar Hills Estate and in close proximity to roti prata outlets in the Jalan Kayu area, fish farms and The Animal Resort? A new condo with about 225 units could be ready for launch in about a year.

It will come up on a 99-year leasehold plot on the government’s reserve list that will be launched for tender by the Urban Redevelopment Authority in about a fortnight.

The 2.1 hectare site will also have a commercial component of up to 48,438 square feet gross floor area. Analysts say the commercial component, which could take the form of a small mall, would provide much needed shopping amenities in the vicinity.

The site at the corner of Seletar and Yio Chu Kang roads was once occupied by a wet market and HDB shops and was a convenient shopping haunt of Seletar Hills residents.

This is the third time in three weeks that a site on the government’s reserve list which can be developed into private homes has been triggered for launch after a successful application by a developer – reflecting developers’ hunger for land for mass-market condominium development in the face of a strong pick-up in home sales.

The identity of the developer that made the successful application for the launch of the latest site in Seletar was not revealed by the URA yesterday. However, the developer’s minimum bid price was made public – $40.5 million or $128 per square foot per plot ratio.

CB Richard Ellis executive director Li Hiaw Ho predicts strong interest in the plot with about six to eight bids likely, given the current pace of sales of suburban condominiums.

Top bids are expected to be in the $250-$300 psf ppr range – some 95 per cent to 134 per cent above the trigger price, he reckons.

‘Based on this land price, as well as the current resale prices of some of the newer condominium units in the Yio Chu Kang area which are between $600 psf and $700 psf, new apartments at this site should fetch prices of between $700 and $750 psf,’ he said.

However, Colliers International’s research and advisory director Tay Huey Ying expects just a handful of bids for the site, citing the lack of amenities in the vicinity and the fact that the site is not in close proximity to an MRT station. She also noted that older condos in the vicinity, such as Seletar Springs Condo, Serenity Park, Sunrise Gardens and Nim Gardens, fetched median prices of $480 psf to $520 psf in the first half of this year.

The site first appeared in the Government Land Sales Programme in the reserve list for second-half 2004.

At the time, it was much smaller, at 0.5 hectare. The plot was later expanded and in the second half of 2008 was moved to the confirmed list and slated for launch in November last year.

However, before that could happen, the government suspended confirmed list land sales in October last year during the global financial crisis. That was when the plot was moved to the reserve list where it had remained until it was triggered for launch.

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Demand for private homes on an upward curve

Posted by lohrenee on August 9, 2009

By KALPANA RASHIWALA

(Source : Asiaone Business, First published in The Business Times)

Even as Urban Redevelopment Authority yesterday launched the tender for a plum 99-year leasehold site for condo development at Dakota Crescent, expectations are running high that developers will trigger the launch of more housing sites from the government’s reserve list in the coming months.

This is against a backdrop of strong sales for mass-market projects, the latest being the Optima condo next to Tanah Merah MRT Station.

Read related:
ยป Homes from sold-out projects back on market

Mass-market home prices have risen about 10 to 20 per cent from the recent low in Q1, according to property consultants.

One concern is whether the market is running out of supply of mass-market condos and whether this will set the base for further price hikes.

The current pipeline has about 7,500 mass market homes yet to be launched on sites sold in the past, according to CB Richard Ellis data. These include three 99-year leasehold condo projects in Toa Payoh, Yishun and West Coast Crescent on earlier sites sold by the government.

The rest include 99-year projects by Hong Leong Group on a large historic landbank in Pasir Ris, projects by Far East Organization and Frasers Centrepoint on remaining land on the former Waterfront site along Bedok Reservoir, and a host of freehold projects by various developers in places like West Coast Road, Tampines Road, Yio Chu Kang Road, Toh Tuck Drive and Hillview Avenue.

After the recent launch of two housing sites (at Dakota Crescent and Chestnut Avenue) from the government reserve list following successful applications by developers, this list still has sites that can potentially generate a total of about 5,800 private homes. Some are attractively located near MRT stations in places like Bishan, Serangoon Ave 3, Bartley Road and Bedok. The last two sites will be ready for application by developers in November and December respectively.

The government could add more sites to its reserve list for first-half 2010, or even reintroduce the confirmed list, where sites are launched according to a prestated schedule, unlike reserve list sites, which are launched for tender only upon successful application by developers undertaking to offer minimum bids acceptable to the state.

It will take some time for site launches to translate to new condo launches. However, ensuring there’s enough supply should not be a nagging issue.

But beyond looking at supply, one needs to also understand why demand has spiked since February. Developers have sold a total of 7,250 private homes in the first six months of 2009 – exceeding the 4,264 units sold in the whole of last year. Some consultants are predicting the number for the whole of this year may reach the record of 14,811 units set in 2007.

The current home buying wave began in the mass-market segment, then permeated upwards. Some of the buying represents pent-up demand. People are also taking the opportunity to pick up their dream home at current prices – which despite recent price hikes are still below peak-2007 levels – for fear of missing the boat as they did during the property run-up in 2006 and 2007.

Property speculators are also busying themselves.

But other factors are also at play that are creating a paradigm shift which could suggest that ‘natural demand’ henceforth may be higher than the average 8,000 private homes developers sold annually over the past 10 years (between 1999 and 2008).

These include an increase in immigration into Singapore over the past few years as it embraces foreign talent and wealth and a gradual ‘internationalisation’ of the Singapore property market as foreigners are drawn by Singapore’s emergence as a global city.

Another point to consider when understanding why there could be higher natural demand for private homes is to look at the public housing segment.

The Housing & Development Board’s construction of new flats has slowed down over the years. During 1981-85, an average of about 37,000-plus flats were built by HDB per year. In 1998 too, some 36,600 new flats were built. Later in the face of a supply glut, HDB scaled back building new flats; the figure eased to about 10,000 units a year completed in 2002 and 2003, and fell further to about 5,000 units completed in 2007.

A smaller supply of new HDB homes has made it easier for HDB residents to sell their flats in the resale market and upgrade to entry-level private homes in the suburbs.

Incomes of Singaporeans have grown over the decade, making more aspire to own a private home.

The low-interest rate policies adopted by governments around the world to cope with the global financial meltdown have translated to near-zero returns on fixed deposits and low mortgage rates – making property an attractive investment option. The strong distaste for structured financial products post-Lehman has made property more sought-after.

The home-buying frenzy of late has also come about due to a confluence of two important factors – a recognition of value by buyers (following price chops by developers in Q1) and an improvement in sentiment.

More value-recognition will emerge for real estate as Singapore’s railway network is doubled to 278 km by 2020, boosting connectivity and cutting travel time from homes in locations once called suburbs to the city.

Perhaps we should not be too surprised if strong demand for private residential properties persists. Of course, if another international disaster takes place and foreign property investors again exit, demand could dive, like it did last year during the global financial crisis.

Spikes and dips in home buying and property prices could become more pronounced by virtue of Singapore’s real estate market becoming more international.

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Don’t write off old bungalows

Posted by lohrenee on August 8, 2009

(Source : The AsiaOne, First published in The Business Times)

WHEN one buys a landed property, it is more than likely that it will come with a house attached.

Quite often, however, new owners will demolish the existing house and build a new one from scratch, adding to the money invested in the property. And at an average of $500 psf for construction cost, this can add up to quite a hefty sum. So it may pay to consider the potential of the existing old bungalow instead.

Anyone with a good eye for architecture should be able to see how rooms and spaces can be transformed with simple changes. But for those without, the best person to ask is an architect.

Transforming old buildings is something architect Mink Tan has had experience with, having won the URA Heritage Award for the Waterboat House on Fullerton Road in 2004.

By reconfiguring the spaces and adding some new ones, he converted the formerly dark and airless Waterboat House into a light and airy lifestyle F&B destination.

Similarly, when Mr Tan was shown around a 14 year old colonial style bungalow that a client was interested in, he could see that it was a building that had potential.

The large house has a built-up area of about 7,500 sq ft house and sits on nearly 16,000 sq ft of prime land. But with a house of this size and design, the rooms tend to be dark.

To address this, Mr Tan simply replaced many of the windows with French windows which are just glass-panel doors that can be opened to let more light in.

‘The spaces also didn’t feel right,’ says Mr Tan. So he created an ‘enfilade effect’ by opening up the rooms and establishing view corridors that did not exist before.

By simply knocking down some of the bedroom walls to give access to existing ledges, the architect also converted ‘dead space’ into balconies. Even the roof of the car porch was converted into a terrace simply by introducing new doors.

In other areas of the house, like the kitchen, all it took was some space-planning to turn what was previously a small kitchen into a bigger, wet and dry kitchen.

Not all houses will be as easy to transform, especially if the house happens to be gazetted for conservation, as many of Singapore’s grandest bungalows are.

Old bungalows that have been gazetted for conservation can be transformed and remodelled but strict guidelines set by the Urban Redevelopment Authority (URA) must be adhered to.

Many of the conserved bungalows are within the Good Class Bungalow Areas of Chatsworth Park, Holland Park/Ridout Road and Nassim Road/Whitehouse Park and Mountbatten Road.

Bungalows usually consist of the main building and an outhouse for the kitchen, toilets and servants’ quarters. For conserved bungalows, only the main house needs to be retained. The outhouse can be demolished to make way for new extensions to the main house.

New extensions may be permitted for additional floor area but this will be subject to Development Control guidelines, the allowable building height of the area, and the requirements of relevant technical departments.

The potential of some of these conservation bungalows also lies in the land on which it is built. Often, the land area can be large enough to be subdivided into smaller plots.

According to the conservation guidelines, in the Good Class Bungalow Areas, a concession to facilitate the subdivision of land allows for one sub-standard plot size of not less than 1,000 sq m to be considered provided the total land area together with the conservation bungalow plot is not less than 2,800 sq m.

Perhaps the most challenging aspect of owning a conservation bungalow is restoring it.

Architect Chan Soo Khian of SCDA Architects has restored several conservation homes and he advises that potential conservation home owners should be happy with the overall spatial quality of the building before buying it because quite often, the buildings are too old to undergo extensive construction work. ‘Quite a few of the colonial bungalows have load bearing brick walls on footings that have constrains from guidelines and a structural point of view,’ he explains.

The guidelines on conservation are extensive. Apart from restoring design features in the facade, it could also include having to restore original windows, doors, balustrades and even roof tiles.

Even the existing structural system has to be retained and restored.

However, as Mr Chan points out, many are prepared to pay a premium for these old bungalows. ‘The clients that buy the conservation properties do so because they love aspects of the heritage properties such as the mature landscape that usually surround the properties,’ he adds.

Indeed, such bungalows fall into a niche market that is popular with discerning home buyers. It is a niche that some developers have begun to take notice of.

Boutique developer Satinder Garcha’s company Elevation focuses on unique properties in very prime locations. One such property it has recently restored is at Swettenham Road.

The old bungalow was designed by Frank Brewer and built in Late Arts and Crafts style during the colonial era. Frank Brewer incidentally also built the late president Ong Teng Cheong’s house in Dalvey Estate.

Mr Garcha added that these old bungalows do certainly have investment potential, more so than regular Good Class Bungalows, ‘because of the rarity value and the desirability of these bungalows, especially by foreigners and now increasingly Singaporeans’.

He added that the most coveted are those which are conserved with historic value but restored and modernised with modern conveniences – offering the best of old and new.

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Try Resale For a New Home

Posted by lohrenee on August 8, 2009

By Joyce Teo, Property Correspondent

(Source : The Straits Times)

Now that the property market has picked up, individual sellers are out in full force.

They are putting up their properties for sale, from the newest uncompleted homes to fully furnished tenanted units and ageing apartments.

For home seekers, this means that apart from brand-new launches, there are plenty of choices in the resale market.

Even developer Keppel Land (KepLand) has started releasing tenanted, fully furnished units at its 99-year leasehold Caribbean at Keppel Bay for sale.

The 969-unit development, launched in 2000 at about $800 per sq ft (psf), had been fully sold, except for 168 units that KepLand has kept for leasing purposes under Caribbean Residences.

The developer declined to disclose the number of transactions, but said asking prices are around $1,300 psf to $1,400 psf. Caveats lodged last month show deals done from $1,131 psf to $1,218 psf.

But, said HSR Property Group executive director Eric Cheng, ‘the resale market is not that hot compared with 2007, when you could sell one apartment within one or two days’. Right now, only the new projects are moving very fast, he said.

In the resale market, not only are the units bigger, but living space is also larger as there are fewer bay windows and planter boxes unlike in new condo units.

Prices are also much more affordable, said Chesterton Suntec International’s research and consultancy director Colin Tan. But at the moment, ‘a large amount of the liquidity or excess money in the market is going mostly into the new launches, that is, uncompleted properties’, he said.

Buyers may want to consider already-built or older projects near new launches which are selling at lower prices, property experts said.

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