Singapore housing market needs more certainty — Conrad Raj

JULY 19 — Singapore National Development Minister Khaw Boon Wan’s comments in Parliament on the state of the property market illustrate the conundrum of viewing a glass of water as being half full or half empty.

Noting that residential property prices have moderated in recent months, he said the various measures to cool the market “have helped buyers, including those at the middle and low end of the market”. 

Growth in mass market private housing prices outside of the central region slowed to 0.4 per cent in the second quarter of the year compared with 1.1 per cent in the previous quarter, while overall private home prices moved up just 0.3 per cent in the first six months of the year compared with 6 per cent a year ago.

And there is a warning more measures might be introduced if the situation requires.

“These are positive signs that the market is moving towards a stable and more sustainable path. We continue to monitor the market closely, and remain ready to revise and enhance the policy, if and when the situation demands it,” Khaw said.

What exactly is the ministry monitoring, and what are its targets or goals? 

It is also good to see that short-term property speculation has fallen sharply, as indicated by the relatively low volume of sub-sales. But the fact remains that home prices have not come down — they are still at historical highs.

Perhaps the ministry should be clearer about its goals and targets. What exactly is “a stable and more sustainable path”, in its view?

FOREIGN BUYERS

Yes, the proportion of foreign purchases of residential property has come down — from 20 per cent last year to 7 per cent for the first six months of the year.

This is perhaps because of the introduction in December last year of the Additional Buyer’s Stamp Duty (ABSD). 

Foreigners (albeit those from America, Switzerland, Liechtenstein, Norway and Iceland are exempt because of certain trade agreements) here have to pay an ABSD of 10 per cent when they buy a home here.

But what is the proportion of purchases by foreigners that Singapore would be comfortable with? I am sure we do not want to eliminate foreign sales altogether. 

Also, what about the proportion of sales to permanent residents, who have been said to be one of the main causes of the steep jump in prices in sub-sales of housing board flats? 

SPELL OUT THRESHOLDS

As I have argued before in a previous column, there must be a fairer and more transparent way of introducing measures to cool the property market. 

It is not fair for the government to sell land one day and introduce cooling measures the next, as it has done previously. Buyers and sellers should not have to suffer huge losses by being caught unaware.

Property development takes time. It is often a five- to six-year proposition between buying the land, developing it and finally selling it. In the meantime, loans and other finances have to be managed. 

Forecasts are made under prevailing conditions and with current factors in mind. Developers may feel shortchanged if the government one day puts up a piece of land for sale and soon after introduces measures that are negative to developers. 

Residential property buyers and investors would feel likewise, if they purchased a property on current assumptions and conditions, and find the government introducing measures to dampen the market the next day. 

Buying a property is a considerable investment; for most people it makes up a big chunk of their assets and life savings. 

Property, in a society where a very large proportion own their own homes, impacts almost everybody. There is therefore a need for greater clarity in our housing policies. The government should spell out the benchmarks or price thresholds that would entail a response in action from the ministry.

Also, if the government believes in market forces, the “reserve price” in government land sales should be abolished. You cannot say that market forces should prevail and at the same time artificially prop up land prices with the reserve price. The national coffers might suffer a bit, but it might perhaps help make housing more affordable.

There must be more certainty in the property market. There should be less — or no — speculation on when and what measures the government would introduce to curb or cool the market. — Today

* Conrad Raj is Today’s editor-at-large. - The Malaysian Today

* This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insider.

European developers avoid ‘unlucky’ homes to tap Far East demand

LONDON, July 19 — This September, work starts on a development of 22 homes around a Chinese-style courtyard, pavilion and pond. Enclosed by high white walls, it will have Chinese symbols adorning an entrance gate topped with a roof reminiscent of a Far Eastern temple.

It is being built not in China but Fuenlabrada, an industrial suburb 17 miles (27km) south of Madrid, the capital of debt-ravaged Spain where thousands of construction projects have stopped in their tracks.

“The Chinese have a saying; crisis is synonymous with opportunity,” said Jose Parra, chief executive of the Spanish developer Grupo MAIN, referring to his decision to tap the local immigrant Chinese population after the financial crisis sapped demand among his fellow Spaniards.

“We’re building for the Chinese because they are a very wealthy community in Spain and the rest of the world.”

Parra is one of a growing number of European property developers using Chinese tastes and traditional beliefs such as feng shui, a system designed to maximise positive energy flow, to entice rocketing numbers of cash-rich Far East buyers.

All of the Fuenlabrada homes, which were designed and laid out according to the laws of feng shui, have been reserved with a €5,000 (RM20,000) deposit and Parra plans to build another 70 once the scheme completes in 2014.

The trend has even more momentum in London, where a third of the best new-build homes were sold to Far East buyers last year, up from just 4 per cent in 2009, property consultancy Savills said.

While British buyers have struggled to get mortgages from banks crippled by the global financial crisis, strong economic growth in Asia has created immense wealth, fuelled by manufacturing, construction and commodities. The number of US dollar millionaires in Asia outnumbered North America for the first time in 2011.

Should restrictions barring Chinese citizens buying more than US$50,000 (RM150,000) worth of foreign money be lifted, a wave of buyers from mainland China could boost prices for the best London homes by 15 per cent, Savills said.

“We’ve all had to become aware of what the Chinese look for and what will stop them from buying,” said Sebastian Warner, partner in residential development at property consultancy Knight Frank.

Feng shui is a 4,000-year-old Chinese land management system that attempts to increase health and wealth by boosting the flow of positive energy in a given environment and adherents reject properties upon the advice of feng shui practitioners.

“Most Chinese grow up with certain cultural beliefs,” said Philip Yong, a 60-year-old Malaysian Chinese who is flat hunting in London. “It’s like you instinctively know what kind of food you should eat.”

Yong, who owns homes in Toronto, Singapore and Kuala Lumpur with good feng shui, is looking for a property near the River Thames due to his belief that water channels positive energy.

“There’s a certain sort of energy level that one looks for and you can sense when it’s in the neighbourhood,” he said, adding that narrow streets, busy road junctions and houses with little natural light all entail poor flows of positive energy.

London developer Native Land was unable to sell a string of flats in a Chelsea block to Far Eastern buyers last year due to their layout.

“We were scratching our heads trying to work out why they wouldn’t sell. We were eventually told the bathroom door was too close to the front door, which meant the good fortune flowed out of the property,” said chief executive Alasdair Nicholls, who said he would avoid similar layouts in future.

A belief that certain numbers bring good or bad luck is also relevant. Some buildings in China change floor numbers to omit the number four because it sounds like the word for “death” in Chinese, while the number eight is considered lucky as it sounds like the word for “prosperity”.

Native Land’s 227 luxury apartments in a Richard Rogers-designed scheme on the opposite side of the River Thames from St Paul’s Cathedral in London do not contain the number four for that reason, Nicholls said.

Harry Handelsman, chief executive of UK developer Manhattan Loft Corporation, has used a feng shui master on seven of his company’s properties, including the £200 million (RM1 billion) restoration of a hotel next to London’s St Pancras International train station.

The company added crystal furnishings, which are believed to help channel positive energy, and altered interior layouts to counter the negative effect that departing trains have on the site’s energy under the principles of feng shui.

Meanwhile, Berkeley Group imported tons of marble and Chinese granite for the interiors of a 50-storey apartment tower south of the River Thames, one of many developers that push their Far Eastern credentials in their marketing material.

While feng shui adherents believe ponds and fountains help positive energy flow, they dislike sharp angles as they break the path of energy. A pillar in the main lobby of the Heron tower skyscraper in London was changed from square to round for this reason before it opened in 2011.

Feng shui masters can charge up to two per cent of the building’s development cost depending on their reputation, with bigger schemes typically costing tens or hundreds of millions of pounds.

Feng shui master Michael Oon, a former forensic scientist with London’s Metropolitan Police, cited Apple’s London Regent Street store, as an example of a building with good feng shui.

“For London, the energy flows from Regents Park, Hyde Park and Green Park,” Oon said. “Energy flows down Regent Street, straight through Piccadilly and to the River Thames. The Apple store is on a bend on the road so the energy goes straight through the door,” Oon said.

Meanwhile, he said, oil giant BP’s myriad problems began after it moved its UK headquarters from Finsbury Square to St James Square in London’s West End in 2002, a location that positive energy bypasses. A BP spokesman dismissed the suggestion as “outrageous and stupid”.

A decision by six Chinese banks to set up London offices close to the Bank of England in the City financial district was likely related to feng shui, property agents said. The Bank is seen as an authority figure and therefore a source of good energy.

Beliefs in feng shui manifest most strongly in the designs of buildings in Hong Kong and Singapore. For instance, a residential block facing Hong Kong’s Repulse Bay waterfront has a hole in the middle purportedly to allow dragons that live on a mountain behind to drink water from the bay.

Younger more western-minded buyers can pay less attention.

Those buying as an investment were keener to get a good bargain than good feng shui, said Michelle Zhang, head of property consultancy DTZ’s China desk, who changed her telephone number to include more number eights after taking the job.

“It’s something nice to have, but not a must-have. As a priority on their shopping list, it comes after price and location,” she said.

Either way, many developers still err on the side of caution.

“I cannot say I’m an absolute believer but if millions of people believe in a particular thing and it doesn’t affect the aesthetic of what we’re doing, I don’t see why not,” Handelsman said. — Reuters

首长：正视全球商业流程外包要求 槟将设科技研发中心

（槟城18日讯）槟州首长林冠英透露，槟州发展机构最近已经征询计划书，以发展峇六拜沿海大道一块2.4英亩的地段作为研究与发展中心，中心名为 “槟州研究、创新与科学中心” （PRISM），协助槟州在科研及科技创新上，能与已发展国家并驾齐驱。他强调，制造业与服务业的汇合，将是槟州政府要将槟城转换成高收入、高科技及高附加价值经济的重要关键行动。
他认为，资讯科技商业流程外包中心将会加速制造业与服务业的汇合，并将槟城的服务业提高到另一个层次。“槟城作为马来西亚的硅谷，各电子业大厂将乐观其成及协助资讯科技商业流程外包在槟城的发展。”他指出，槟城原有的工业群组所组成的产业链，可以让企业有能力投身顶端的研究与发展领域。林冠英是于周三在假依恩奥酒店举行共用服务（Shared Services）与外包（Outsourcing）研讨会上，致词时如此指出。
在致词中，林冠英也说，槟城作为新兴的资讯科技商业流程外包据点，州政府非常正面看待槟城符合当今全球商业流程外包的要求，这包括：
 (1) 技术设定——槟城是马来西亚最早工业化及城市化的地方，也表示槟城是人才聚集人文荟萃的地点，能符合投资者这方面需求。(2) 成本——2011年ECA国际调查全球240座城市的生活开销，槟城排在209名，在亚洲则排在第40名。因此，相比柔佛亚洲排37名全球199名、吉隆坡亚洲33名全球186名，槟城的生活开销成本相对廉宜。(3) 拥有世界级的设施，包括优良的传播与沟通设备，也包括了数码智慧。槟城是马来西亚唯一州属在公众地方提供免费无线上网的地方。目前槟州无线上网计划已经在全槟的公众地方设有1550个免费无线上网热点。(4)  州政府采用能干、公信与透明的施政方针进行良政与廉政。以廉洁智慧作为核心价值，州政府已经透过公开招标、完全公开政府合约及公开申报政府领袖的资产，让州政府的盈余破纪录的增加，同时破纪录的减少了州政府债务。(5) 州政府已经成立职业协助与培训中心，以再培训及留住人才。职业协助及培训中心已经透过网站的设立搜寻国际人才，同时与人力资源业者进行对话及在国内外高等学府进行招揽活动。- 光华

世界不动产联盟槟分会 不认同发展商负面报导

槟城18日讯）马来西亚世界不动产联盟槟城分会对近来某些报章对槟州发展商的负面报导方式深表关注。该会认为，这些报导以所谓的“山坡发展猖獗”为题大作文章，以环保之观点为名，极尽描绘之能事，引导读者对槟州屋业发展商产生负面印象，实质上也诱导了公众进入一场“政治性责难游戏”。
这些负面描绘发展商的报导是难令人认同的，因为这些发展商是拥有合法权力去发展他们购取的土地的。阻止这些发展商去发展所购土地只意味着在妨碍马来西亚经济的成长。这类负面观点不但吓走了潜在的投资者；也让现有的投资者及发展商身陷险境。“这些居心叵测的新闻报道文章，只涉猎表象而非实际，只大量提出问题而鲜少给予答案；实际上，报章正确的报道方式应是提供可信的报道内容之外，也应公开揭示新闻背景，事情状况是为何及如何产生的，把前因后果全盘分析。你不能只报导后果，而不报道前因；你不能只去脉，而没有来龙。因果关系得报导清楚，没有4至5年的过程，就不会有今天的发展景象。”
马来西亚世界不动产联盟槟州分会深信，我国可通过可持续发展而达致进步，房屋需求及促进经济两大目标可相辅相成一齐达至。一些已发达的国际大城市如香港、新加坡及摩纳哥，虽然同样是土地匮乏，但是通过可持续发展，一样可以在经济上达至繁荣兴旺。上述这些大都会共同面临了土地短缺的难题。有鉴于此，山坡发展项目在这些大都会均获允准，条件是有关山坡发展项目是在受到地质技术工程部门管控的基础上进行。“槟州的山坡发展安全指南在2012年获得检讨，从而提供了更清楚明晰的阐释，以大力提倡山坡安全与环境友善的发展项目。这项山坡发展安全指南是发展商必须迫切严格遵守的法则，另一方面。地质技术专家也继续扮演积极角色，为山坡发展相关事务提供监控建议。目前，山坡发展项目的高度限制是海拔76公尺以上。”
须重检山坡高度限定
该会相信有关当局有必要重新检讨这项海拔76公尺的现行山坡发展计划之高度限规定。该会也相信槟岛土地短缺的问题，将对槟岛未来的世代构成更大的挑战，他们必须迎接挑战，以解决可负担房屋之需求以及持续吸引本地与外国投资者来槟以保持经济可持续成长。如果无法解决这项课题，这将会大大不利于我们这个发展中国家，而槟城这个海岛更会深受其害。由于某些媒体近日的报道混淆了公众的视听，马来西亚的屋业发展成长的未来前景因此荆棘满途，处理危险关头。总而言之，当前媒体是否只报导确实的精准资讯将是决定性的关键。媒体如果这么做，则马来西亚经济发展前景才会重现生机。- 光华

凝聚合法夜店增夜间人气 设点范围扩至古迹区

（槟城18日讯）槟岛市政局限制娱乐场所的设立范围第二期计划，将扩大至古迹区，通过凝聚合法夜店的商业活动聚集夜间人气，让夜晚的乔治市古迹区增活力。槟市局限制娱乐场所的设立范围，是为了避免它太靠近住宅区，噪音扰人清梦，也避免寻欢的民众因胡乱停放车辆，影响当地居民的出入。首期共规划出11个特定的地点，至于第二期的地点则圈定在古迹区内，并将寻求世遗机构的意见后再宣布。
槟岛市政局清洁、卫生、执照及公共教育小组交替主席王耶宗告诉《光华日报》，槟市局已于本月初将第二期规划出的古迹区娱乐场所地点提呈给世遗机构（World Heritage Inc.），目前正等待对方回复。一旦获得世遗机构的首肯，槟市局就会宣布第二阶段的地点，并批准在此区域开设娱乐场所的申请。他披露，该局建议适合设立娱乐场所的古迹区地点，包括土库街、海墘新路及莱特街等。他以土库街为例，白天的土库街都是银行与金融业聚集的场域，惟夜幕低垂，白天的繁忙开始变得冷清。若通过酒吧夜店的商业活动，相信将可把古迹区打造成时尚动感娱乐区，带动人气。“建议中的地点并非住宅区，都是商业单位聚集的街道，白天繁忙晚上寂静，若在此区域设立娱乐场所，其噪音不会影响他人，停放车辆也不会造成交通阻塞问题。
他也表示，槟市局日前通过限制娱乐场所开设的11个地点，将在近期内上传至市政局官方网站及在该局执照部的布告栏上发布。换言之，现欲申请开设娱乐场所的业者，都须遵循这项新条文。不过，现有的娱乐场所并不在限制内。“上述建议于上月杪槟市局例常会议上通过后，负责官员就开始着手准备实行的事宜，并已将相关资料送往该局资讯工艺部，料在近期内上传至官网及发布在执照部的布告栏处。”
王耶宗：娱乐场所集中化　方便有关单位监管
王耶宗表示，槟岛市政局在槟岛规划“娱乐场所区域”，不仅可限制娱乐场所的设立地点，集中化后更方便有关单位进行监管。他说，市局执法人员、警方及移民厅（若涉及外籍员工）将对非法经营的娱乐场所采取取缔行动。市局可开出250令吉传票对付违例营业的业者，并充公娱乐器材及物品并不得赎回。他重申，现有的娱乐场所不受限制，但7月1日之后的申请就不获批准。申请者必须遵守新条文规定，仅允许在槟市局规划的11个地点开设娱乐场所。不过，那些在7月1日之前提呈的申请，如已通过市局技术部审核，则将获批准。“现有的娱乐场所，我们（槟市局）不会强制他们搬迁或关闭，只是数量将不再被允许增加。若业者欲休业，不得把娱乐场所顶替给其他方作继续经营。” -

Green plans for landfill

GEORGE TOWN: The state government has made plans to turn the Jelutong landfill into parks and a site for mixed development projects.

State Local Government and Traffic Management Committee chairman Chow Kon Yeow said the plans would be carried out through a proposed landfill mining and reclamation (LFMR) process.

He said the LFMR process is a proposed recovery and reutilisation project for the landfill.

“The state government has decided to give the Penang Development Corporation (PDC) the responsibility to carry out the project.

“In a meeting last week chaired by Chief Minister Lim Guan Eng, the state government asked PDC to appoint a consultant to set the specifications and criteria for the LFMR process within three months.

“After the specifications and criteria have been set, PDC will call for an open tender or Request for Proposal to invite local and international experts with experience in LFMR to submit their proposal to make the Jelutong landfill reusable for better land-use again.

“We will leave it to the experts to use their expertise to turn it into parks and a site for mixed development projects.

“We will also leave it to them to come up with their own operations on how to recover and reuse the waste materials and to treat and rehabilitate the landfill.

Estimating that the site recovery would take about five to 10 years, Chow said the move would also help to solve some of the existing problems concerning the landfill such as the removal of the potential peat fire threats as well as reducing the production of methane and carbon footprint.

“The possibility of toxic contamination of underground water sources can also be reduced. In addition, LFMR would also increase the land value of the Jelutong site and the social grievances of neighbouring residents will be resolved.

“For the state, this is another one of our green projects to improve the environment for the future generation,” he said. - The Star

Penang govt urged to cancel hillslope projects

GEORGE TOWN: The Penang government should cancel controversial hillslope projects, even if it will incur losses, Penang Gerakan local government bureau head Teh Leong Meng said.

Teh said the state government should do what was best for the people.

Asked if the state should go to court to cancel upcoming hillslope projects even if it may result in massive losses to the state, Teh said: “Correct, because you have to comply with the law and do the right thing.”

Teh, however, claimed that it was unlikely that the state would need to fork out any compensation to developers if the matter was brought to court.

He said even though approvals for certain hillslope projects may have been obtained years ago, a new legislature in the form of the Penang Structure Plan came into force in June 2007.

“This structure plan was gazetted on June 28, 2007 and supersedes all other guidelines.

“It clearly says that high-risk slopes, which include land above 76m or have a slope gradient of over 25 degrees should not be used for housing,” Teh said.

He claimed that the law was not bound by retrospective legislation and since a number of the hillslope projects had yet to begin construction, the state could now reject renewals for building permission based on the new legislature.

Questioned about hillslope projects that had been approved by the previous Gerakan-led state government after the Penang Structure Plan had been enforced, Teh said he could not comment as he did not have the full facts.

Asked about Penang Chief Minister Lim Guan Eng’s challenge to provide a letter of indemnity to cover any possible compensation costs, Teh said there would be no element of risk should other parties pledge to cover any losses. - The Star

Property buyers to be screened by estate agents

PETALING JAYA: Potential property buyers are to be screened before meeting estate agents in a precautionary move by the Malaysian Institute of Estate Agents (MIEA).

This follows several recent cases of attacks against agents by so-called buyers.

MIEA deputy president Siva Shanker said it had no choice but to implement the steps although it would involve more work for agents and clients.

“Agents have been told to screen potential buyers and record as much information as possible like vehicle licence plate numbers before setting up appointments.

“We have also informed agents to always meet them outside the premises first before viewing and be in constant communication with their offices,” he said, adding that the institute had also come up with a set of tips for agents.

“We have informed members to verify their customers, always work in pairs, not to set viewing appointments at night and register themselves at the property's guardhouse.

“We have also told them to carry pepper spray for self-defence.

“Five cases in two months is too much,” he said, adding that the institute was convinced that the robberies involving estate agents were premeditated. - The Star

郑雨周向市政局表明难以接受 反对海边地建超高楼

（槟城16日讯）超级高楼公寓发展计划引争议！槟岛北岸峇都丁宜海边地，拟议建一栋发展总值上亿令吉计的49层楼超高楼公寓，然而计划遭当地州议员“阻拦”，反对筑起这栋丹绒武雅选区最高的建筑楼。在山坡发展引起争议，酿发朝野互相指责之际，在丹绒武雅这个旅游地带，同时出现高密度发展计划争议，该计划被指也是峇都丁宜海岸线度假地的最后一块海边私人地；有关计划的高度被指超“破格”，一旦完工将成为北岸第一高楼，相信也是槟岛数一数二的超级高楼。
丹绒武雅区州议员郑雨周受询时表示，这项计划是在峇都丁宜海湾酒店毗邻的一片黄金地，该地也是峇都丁宜最后一块海边私人地。他在上月接获槟岛市政局城乡规划局告知，地主拟议提高容积率（Plot Ratio），在该海边地打造49层楼高建筑，而他也已针对此事向市政局表明其反对立场。
他表示，目前在其选区，分别在丹绒武雅及峇都丁宜个别有一项海边地计划拟议开动，而在峇都丁宜上述49楼高楼计划却是在新近提呈，而他已回函市政局提出反对。他说，由于丹绒武雅至峇都丁宜为槟城旅游地带，也是山坡生态敏感区，再加上该海边地也在传统上面对高楼限制，所以他反对允高楼在海边上矗立。
他说，前朝政府执政时已允许当地一些破格先例发展，造成开始出现高楼情况，包括沙洋酒店的新建筑也爬高至9层楼，而“By The Sea”高级公寓计划也爬高至最高11层，可是他难以接受49层楼高的公寓拔地而起矗立在海边。他提及，除了上述传统对海边沙滩地拟定的高度限制，目前其选区也面对“次要发展走廊”争议悬而未决，所以他要求暂时冻结任何与该争议有关的高密度发展计划。此外，他也表示反对另一项座落在丹绒武雅海边的33层高楼计划，目前他尚在等候市政局告知下文。- 光华

Residents unhappy over hillslope projects

GEORGE TOWN: Residents living around a hillside construction site in Sungai Ara here are unhappy over the project.

More than 30 representatives from four resident associations of SunriseGarden, Regency Heights and Raintree Garden A and B gathered to voice their grievances and concerns over the project.

State Gerakan local government bureau head Teh Leong Meng who met the residents, claimed that the developer was building two clubhouses and 14 blocks of apartments on a piece of land measuring about 32.7ha.

“The apartment blocks are between 10- and 21-storeys high. The project approved in February this year is above 76m. There will also be 92 bungalows.

Grave harm: A bald ugly spot in Bukit Gambier where a high-rise condominium project is set to emerge.

“The residents are unhappy that the project was allowed to proceed and want the state government to stop it,” he said yesterday.

He said the residents' primary concern was the issue on safety.

“Once the project is completed, the green lungs in the area will also be destroyed,” he claimed.

After visiting the group, Teh met up with another group of 15 residents from the Bukit Gambier area who also protested against a hillslope project there.

He claimed that the developer was building a 38-storey condominium along with seven bungalows.

“This project on 3.57ha of land is also above 76m and there will also be immense hill-cutting activities here,” he claimed.

He said the residents were against the project and were worried there would be flash floods or landslides.

“Even though the developer can claim they have taken slope protection measures, who can guarantee total safety?” he asked. - The Star