Ahead of proposed changes to the Land Titles (Strata) Act, property agents and owners of affected en bloc sites are eager to push pending sales as they may soon face bigger hurdles when the amendments become law. The changes in en bloc sale legislation, expected to be passed in early October will means owners that want to sell en bloc will have to follow new rules, which mean higher costs and a prolonged process. One source estimated there are some 50 en bloc sites already launched by tender or expression of interest in the market, with half of these not having obtained consent from owners holding at least 80%. The amendment will mean that the majority consent is to be based on the area of the units in the development.
- The Business Times, P3 

Residential property stocks took a beating yesterday (28/8) as investors got the jitters over tougher en bloc legislation that could slow land-banking. Analysts said proposed changes to en bloc sale rules are unlikely to have a major impact on developers, with the pace of such sales having already slowed because of higher asking prices. CIMB-GK’s Mr Chua said that the property market is still strong and prices for the past half-year have consistently surprised on the upside, but at the current moment investors are not willing to take risk.
- The Business Times, P4

LaSalle was the top bidder yesterday (28/8) for a 99-year leasehold commercial plot next to International Plaza, with a bid of $237.2 million or $941 psf of potential gfa. LaSalles is planning a 20-storey office development with about 200,000 sq ft net lettable area. The office development will target occupiers looking for cheaper accommodation close to down-town and the project may be completed around late 2009. Industry sources suggest LaSalle is looking at a $13 psf average monthly rent.
- The Business Times, P8

URA is offering small sub-divided landed housing plots for sale. It will auction 12 on 99-year leasehold tenure at Sembawang Road/Andrews Avenue on Oct 30. The plots, in Phase 1 of a new landed housing estate called Sembawang Green, can be developed into a total of 57 homes – 42 terrace houses, 14 semi-detached homes and a bungalow. The expected price for the terrace could fetch $220-250 psf of land area, the semi-detached $240 to $270 and bungalow plots around $260-300 psf. These reflect breakeven costs of $1.0- 1.1 million per terrace house, $1.4 - $1.5 million per semi-D and $2.6-2.8 million per bungalow.
- The Business Times,P8

Despite an almost 40% rise in the projected cost of Singapore’s Marina Bay Sands project, Las Vegas Sands reassured yesterday that it remains committed to the massive resort project, which is expected to transform the Marina Bay area. Costs are expected to rise by up toUS$1.4 billion (S$2.1 billion) – a significant increase on the original US$3.6 billion price tag. The two attributed the higher cost to recent increases in construction prices, including the cost of sand, as well as various refinements to the design. The groups has been in talks with over 500 parties representing over 1,000 retail brands for the 1.2 million sq ft of retail space, as well as discussions to bring up to 20 business events, conventions and exhibitions to the Singapore property. Some are looking at booking ahead up to 2013.
- The Straits Times, P1

Proposed changes to the law will make the en bloc sale process more transparent and include safeguards to ensure that the various stakeholders get a fair deal. Sales committees will have to be properly formed and elected. Collective sales agreement (CSAs) will be witnessed by lawyers who can clarify doubts and explain terms and liabilities. Even after they sign, potential sellers will have a five-day “cooling-off period” during which they can change their minds. In the longer term, the pace at which en bloc sites have been galloping into the market may slow, due to the new rules and procedures. One source said that the collective sale, which is usually around $3,000 to $4,000 per unit, could double or triple because of the extra work involved – primarily because lawyers will now be required to witness signatures and certify the monthly updates on the consent level.
- The Business Times, P1

A proposed amendment to the Land Titles (Strata) Act will extend en bloc sales by majority consent to five developments not covered by current legislation – Goldhill Plaza, Goldhill Shopping Centre, Katong Plaza, Roxy Square Shopping Centre and Bukit Timah Shopping Centre. Strata title certificates were issued for the projects but the original landowner/developer retained the title certificates and instead gave long leases – at least 850 years – to buyers of units. Owners of such units can only do an en bloc sale with unanimous consent – and the approval of the original developer, who owns the reversionary interest in the property. But the ministry of law proposes to allow them to proceed with an en bloc sale by majority consent.
- The Business Times, P3

Even though property costs and wages are on the rise, Singapore remains cheaper than global cities in the region, such as HK and Tokyo. Mr.Lim, Trade and Industry Minister pointed out that in the past three years, the consumer index has increased at an annual rate of 1%, while overall unit labor cost actually declined at an annual average of 2.2%.The Ministry of National Development (MND) also released additional information on property prices and rents “to allow the public and businesses to make more informed decisions on property purchases and rentals. The MND has been putting out an ample supply of land with more than 42,000 private residential units and 640,000 sq m of office space to be completed by 2010.
- The Straits Times, H4

Some foreign funds used last week’s recovery in the local stock market to get out of Singapore shares altogether. Funds that invest only in Asian market sold US$135.6 million of Singapore stocks between Aug 16 and 22, a week that saw the STI rebound 5.4%. The outflow is more than treble the US$30.8 million sold by these funds the previous week – when panicked investors across the globe dumped shares over fears of credit crisis. The apparent paradox – selling out just as things were picking up – may be due to funds offloading stocks in Asia, where they still enjoy fat gains, to raise cash to meet redemption payments back home. There are also fears that the US sub-prime mortgage woes and the resulting credit crunch may hit even Asia’s robust economies
-The Straits Times, H20 

Singaporeans can check out the concept next month, when Savills International unveils the Four Seasons Ocean Residences – 112 private residences on a 219m luxury vessel with staff and high-end services. The homes range in size from 797 sq ft to nearly 8,000 sq ft. Most are two- and three bedders, with features that include floor-to-ceiling windows, living room areas, master bedroom suites with walk-in dressing rooms and bathrooms en suite, kitchens, and staff entrances. Price range from 2.885 million euros (S$5.97 million), or about 3,500 euros psf, for a 797 one-bedder to 30 million euros for a 7,860 sq ft four-bedroom, three-storey penthouse. The completion will be in 2010 will offer plenty of entertainment, including four restaurants, an 11,000 sq ft spa, a style casino, a supermarket, a wine cellar and a driving range. There will also be concierge service and an excursion coordinator to arrange for those exotic and expensive tours. Yearly service charges start from 72,000 euros.
- The Straits Times, H16