Tag Archives: suburbs

New InterContinental Hotel at Robertson Quay

The Gallery Hotel in Robertson Quay will make way for a luxury property under the InterContinental brand. RB Capital, which owns the Gallery Hotel, has appointed InterContinental Hotels Group (IHG) to manage the property under the chain’s top-tier brand after it undergoes a major refurbishment and re-opens in 2016.

InterContinental Singapore Robertson Quay will have 225 rooms, starting at 300 square feet each; about 10 per cent of the rooms will be suites above 500 sq ft. This will be IHG’s second InterContinental hotel in Singapore after the one in Bugis Junction. The existing Gallery Hotel, which RB Capital bought in late-2013 for S$232.5 million, will close its doors in November for the renovations, expected to cost around S$70 milion.

More than half the building’s structure will be brought down, and the rest stripped to floor slab and pillar for the conversion of the property into a luxury hotel. The first three levels of this 10-storey property will be converted to 63,000 sq ft in lettable area for retail space, primarily driven by F&B outlets and food-related retail. The first level will also house the hotel’s arrival lobby, concierge services and the hotel’s flagship restaurant.

The hotel reception/check-in will be on Level 4, which will also have meeting rooms and function space, the club lounge, a swimming pool, and bar and dining facilities. Rooms will be located from Level 5.

http://www.businesstimes.com.sg/premium/top-stories/rb-capital-appoints-intercontinental-its-revamped-hotel-20140930InterC hotel

Commercial space crunch in central area

Space crunch drives up office rents in CBD and Suburbs, as reported in today’s ST.

A space crunch in the Central Business District (CBD) and the completion of new suburban developments drove up office rents islandwide in the second quarter, consultants said.

The data underlines two key trends: One is that firms that do not need a downtown address are relocating to the cheaper sites on the outskirts while CBD rents are rising on the back of robust demand for limited space.

Average rents for Grade A office space in the CBD jumped 10.7 per cent overall to $10 psf per month in the second quarter from the preceding year, according to property consultancy Cushman & Wakefield.

The average gross rent in Marina Bay was $12.95 psf per month, a marginal 0.4 per cent higher than in the first quarter.

Another consultancy, DTZ, also estimated yesterday that average gross rents in Marina Bay rose 6.5 per cent to $12.25 per sq ft per month in the second quarter from the preceding three months.

Consultancies may come up with different rental estimates due to the varying baskets of properties that they track.

Rents in the Raffles Place and Shenton Way areas were cheaper than in Marina Bay.

In Raffles Place, Cushman said the average gross monthly rent grew 3.5 per cent in the second quarter from the first to $10.25 psf per month.

Rents in the older part of the CBD around Shenton Way, Robinson Road and Cecil Street stayed stagnant at $8 psf per month on average, said DTZ.

Cushman said the leasing momentum in the CBD would likely continue in this half of the year, with keen interest expected from companies in the business services and technology sectors.

Businesses that do not need to have a presence in the CBD are relocating to city fringe areas or the suburbs where rents are more competitive, it added.

Still, suburban rents shot up faster than those in the CBD in the second quarter compared with the same period last year, according to a report by consultancy Chestertons.

They leapt 22.6 per cent in April through June over 2013 to $5.70 psf per month on average while CBD space climbed 4.7 per cent to $9.64 psf per month.

This jump in suburban rents was mainly because newly completed Grade A office space there bumped up prices.

These completions include The Metropolis in Buona Vista and Jem in Jurong.

However, he said that landlords were unlikely to raise rents much soon.

“We expect landlords to adopt a tenant-retention strategy instead of raising rents significantly in 2014 or 2015, losing ‘loyal’ tenants and facing looming vacancies in 2016 when supply and relocation options are aplenty.”

DTZ said yesterday that around 2.7 million sq ft of office space will be completed between now and the end of next year.

Beyond next year, however, the pipeline supply of office space will reach a new peak of about 3.9 million sq ft in 2016, with about 60 per cent of that located in the CBD, it said.

Major buildings expected to be completed in 2016 include Guoco Tower in Tanjong Pagar and Duo Tower in Bugis.

Total Debt Servicing Ratio (TDSR) impact to date

http://www.channelnewsasia.com/news/singapore/taking-stock-of-the-total/1194772.html

The Total Debt Servicing Ratio (TDSR) was introduced in June 2013 to ensure financial prudence among borrowers and strengthen credit underwriting practices among banks. The ratio determines how much an individual can borrow from the banks.

Under it, total monthly debt payments including home and car loans cannot exceed 60 per cent of the property buyers’ income. These debt payments are wide-ranging and can include home and car loans, study loan, and even credit card debts.

In the private residential market, the impact of the TDSR on sales volume quickly became apparent. There were 482 new units bought in July 2013, a drop of 73.3% compared to 1,806 unit) in June 2013.

In total, 9,115 new homes were bought since the TDSR was implemented – that’s half the amount bought in a year-on-year comparison from Jul 2012 to May 2013.

Analysts we spoke to say the suburban homes were the hardest hit. Numbers compiled by Knight Frank Singapore showed that 63 per cent fewer new homes in the suburbs were bought in the second half of 2013, compared to the first half of the year.

As for prices, the effect of TDSR was seen later that year. The Urban Redevelopment Authority’s residential property price index slipped 0.9% in the fourth quarter of 2013, the first decline in almost two years.

Prices dipped again in the next quarter – this time by 1.3 per cent. making it the largest drop since the second quarter of 2009, when prices fell by 4.7 per cent.

In boosting sales, some developers have turned to cutting prices. One of the latest to join the fray is the Panorama condominium in Ang Mo Kio, which relaunched in May at a median price of about $1,241 per square foot.

That is about 8 per cent lower than the median price when it was first launched in January this year. But property watchers we spoke to say the discounts are typically for bigger or “less prime” units, and developers are unlikely to lower prices across their projects.

Developers may also be creating smaller units, to balance between offering palatable prices for buyers, and maintaining their profit margins. According to figures from CBRE, the median size of units in the suburbs declined from 753 square feet in the third quarter of 2013, to 732 square feet in the first quarter of this year.

The impact of the TDSR was also felt in the private residential resale market. CBRE’s numbers showed that sales volume in the secondary market dropped by 50 per cent in the first half of this year, compared to the same period last year.

But it may be increasingly difficult to find tenants, as the Government tightens its foreign labour controls and more new homes enter the market in the coming months.

The Urban Redevelopment Authority estimates that a total of 18,350 units will be completed this year, while another 21,738 units, excluding executive condominiums, are expected to be completed in 2015.