Our top Singapore and regional property stories.
Drone invasion irks condo developer
The operation of drones in Singapore is in the spotlight once again, after an alleged incident involving one flying into the construction site of a recently launched condominium in Redhill, raising serious safety and security concerns.
A source with knowledge of the issue told PropertyGuru that a real estate agent flew the drone into the site after a buyer asked to see what the view would be like from the future apartment.
The project’s developer is understood to be aware of the incident and is taking the matter seriously, which could result in the property agency involved being sacked. When contacted, a spokesperson for the developer neither confirmed nor denied if the incident took place.
In Singapore, the use of drones to take aerial photos is a standard practice among developers who use it as a marketing tool to help sell units on higher floors that offer scenic views of the sea or city skyline.
This latest incident is believed to be the first in Singapore linked to a condo, and comes after laws on the use of drones here took effect in June 2015. Between April 2014 and May 2015, there were 20 incidents involving drones, said then-Transport Minister Lui Tuck Yew in Parliament last year. These included drones falling onto MRT tracks in two separate instances last year.
Current regulations concerning the use of unmanned aircraft, such as drones, fall under the Civil Aviation Authority of Singapore (CAAS). Their website lists down strict criteria for operators to follow, which includes flying drones a safe distance away from people and property.
“Despite the safety features in some unmanned aircraft, mechanical malfunction, loss of control link or human error could occur and cause operators to lose control of their aircraft in flight,” the CAAS said.
“This may result in the unmanned aircraft colliding with a manned aircraft or another unmanned aircraft, or hitting persons and property on the ground, potentially causing injury and damage.”
Gregory Vijayendran, Partner, Commercial Litigation at law firm Rajah & Tann, explained that permits are required to operate drones for business purposes, such as in the marketing of the property.
Although it is not known if the unnamed agent applied to the CAAS for a license to operate the drone, the developer has grounds to take civil action against the agent involved.
“Civil claims under private law would obviously include the tort of trespass to property. Also, a person who suffers damage to property in connection with a drone could sue under the tort of private nuisance or negligence,” said Vijayendran.
Under the law, a penalty imposed on a drone operator for a first offence is a fine not exceeding $20,000. A second or subsequent offence would incur a fine not exceeding $40,000, or imprisonment for a term not exceeding 15 months, or both.
Meanwhile, the property agency that employed the agent could also land itself in hot soup, as “the agency could be vicariously liable for the agent’s act of trespass, nuisance or negligence”, noted Vijayendran.
More foreign workers in Singapore, but rents still falling
Amid the increase in the number of foreigners coming to work in Singapore, rents of residential properties here continue to fall further, reported CNBC.
Based on data from the Ministry of Manpower (MOM), the number of overseas workers in the country, excluding domestic helpers, rose by more than 22,000 in 2015 on an annual basis. However, this is still a far cry from the 149,000 added in 2008 before more stringent rules on foreign manpower took effect.
However, the government’s rental index has reported a decline of roughly 10 percent since 2013, while landlords, especially those leasing out high-end homes, have seen bigger rental drops.
For example, Panache Management’s Chief Executive, Alexander Karolik Shlaen, reduced the monthly rent for his unit to below $8,000, down 40 percent from $13,000 in 2008. At the Four Seasons Park condominium in District 10, the monthly rent for a 2,200 to 2,300 sq ft unit was slashed to $7,800 from $10,000 between 2013 and 2015.
According to experts, one reason why rents are still falling despite the continued influx of foreign workers is because new expatriates tend to earn less than previous groups. These new workers could mainly be S Pass holders rather than employment pass holders. The former earn at least $2,200 per month, while the latter has a minimum monthly salary of $3,300, said Satish Bakhda, COO of Rikvin Singapore, which helps firms apply for work permits for foreigners.
Also, fewer foreigners from the well-paying financial industry are coming to Singapore, noted Kelly Tang Robinson, an agent with Land Vista Property Network.
“There’s almost like zero relocation here (among bankers),” she said. Although there are still some who are searching for accommodation, many are leaving the country.
Furthermore, financial institutions here now prefer to hire Singaporeans. “With the banking economy not doing so well, it is better to use locals as they have to pay more for foreigners,” said Bakhda, adding that more workers from the oil sector are also leaving amidst a slump in crude prices.
Developers of Gem Residences forced to tweak triple-key units
The URA has instructed the developers of Gem Residences in Toa Payoh to build only one kitchen for each triple-key unit instead of three as shown in the sales brochure, reported The Business Times.
This is because the 99-year leasehold condominium, jointly developed by Gamuda Land, Evia Real Estate and Maxdin, deviated from its original floor plan, said a URA spokesperson.
“URA approved the floor plan for a three-bedroom residential unit in Gem Residences comprising three bedrooms and a kitchen. The floor plan submitted to us for these units did not reflect three separate kitchens. The developer was thus requested to market the residential units according to the approved plans.”
Triple-key units are not new in Singapore and are considered an offshoot of the dual-key concept that started in 2009. Typically, these apartments come with three bedrooms, each with an en-suite bathroom, allowing the owner to rent each sub-unit individually. The landlord does not have to pay higher legal fees or ABSD, which would have been the case if they purchased multiple units.
However, the 980 sq ft TRIO units at Gem Residences caught the URA’s attention earlier this month after original plans included an open kitchen for each of the three sub-units. The agency later asked the developers to remove this feature from two of the sub-units, which will be replaced with a solid work-top.
As of 29 May, the developer had sold 315 of the project’s 578 units since VIP sales began 27 May. However, only three or four TRIO units had been sold, as some purchasers who initially wanted to buy such units later opted for the standard three-bedroom units, after being informed about the URA’s instruction.
Gay-friendly short-term rentals gaining popularity in Singapore
The debate about whether short-term rentals should be permitted in Singapore continues to make news after a public consultation conducted by the Urban Redevelopment Authority (URA) provided no clear consensus on the issue.
Currently, it is illegal to rent out entire apartments or rooms to visitors for less than six months, but many homeowners still take the risk, just to earn extra income. Airbnb and PandaBed are two examples of short-term rental websites that have flourished here in recent years.
The use of gay-oriented website misterb&b has also quietly grown in recent months. Modelled after Airbnb, it’s open to all travellers and hosts, and allows you to book a room or an entire unit from a gay-friendly host. Started in Paris three years ago, the portal already has a large global community.
It currently has 35 listings in Singapore, with prices ranging from $28 per night for a room in the western part of Singapore, to $279 for a night’s stay in a boutique apartment in Bukit Timah. Homeowners here who rent out their properties on misterb&b comprise both locals and expatriates. PropertyGuru contacted a misterb&b spokesperson for comment but has yet to receive a response.
On why they started misterb&b, French entrepreneur Matthieu Jost, co-founder and CEO of misterb&b, said: “Having had experience renting apartments to individuals, I quickly realised the limitations of apartment rental sites. I sometimes noticed how apartment owners felt uncomfortable with me staying with my boyfriend, and it made us feel uncomfortable too. This is why I had the idea to create an apartment rental website specifically tailored for the gay community, where anyone can be accommodated in the best conditions possible.”
40-year-old property agent Johari Ahmad told PropertyGuru that given the grey laws on homosexuality in Singapore, he would be wary of advertising his unit on misterb&b, as the authorities may choose to crack down on such activities.
Marketing manager Ryan Tan, 36, is more open to the idea of opening up his home for gay-oriented short-term stays. “It’s not illegal to be gay or to be friendly to gay travellers,” he said. He also doesn’t understand why short-term rentals are still illegal in Singapore. “Long-term rentals allow homeowners to make rental income, so why can’t the same apply for short-term rentals?”
Both men said they would use misterb&b to find accommodation when travelling overseas.
“Knowing that the homeowner is gay or gay-friendly would mean I can refer to him or her for questions that are related to my needs, like where are the most happening gay bars and clubs, eateries that are gay-friendly, and even medical services that cater to homosexuals,” said Tan.
While Ahmad reckons having a gay-friendly landlord is a huge plus, there are other important considerations as well, such as the location, price, accessibility and maintenance of the property.
Oxley becomes title sponsor for Chinese reality talent show
Oxley Holdings has announced its role as the title sponsor for the 2016 China Super Vocal Singapore Audition Grand Final, a popular mainland Chinese reality show that showcases singing talents from China and other countries.
China Super Vocal, rebranded from The Voice of China, debuted in China in 2012. 2016 China Super Vocal started its Singapore audition (the first open audition in Singapore) in April. 12 contestants who who made it past the auditions and eliminations in Singapore performed at the Grand Final on 21 May at The Coliseum in Hard Rock Hotel Singapore, Resorts World Sentosa, of these, five will compete in China.
“We are elated to be the title sponsor of 2016 China Super Vocal Singapore Audition Grand Final. China Super Vocal and Oxley, both sharing the same ideal of leading dreams, will soon realise the dreams of a new star,” said Executive Chairman and CEO, Ching Chiat Kwong.
S’pore businessman buys island for $5.5m
A Singaporean businessman has purchased an island measuring around 300ha off Tasmania’s northeast coast for nearly AU$5.5 million, reported Australia’s ABC News.
According to Ant Manton, the property agent who brokered the sale, he could not name the buyer or divulge the exact selling price because he is bound by a non-disclosure agreement. However, according to a report by The Straits Times, the island’s buyer is Singapore-listed Fragrance Group’s billionaire founder, Koh Wee Meng.
Based on the property’s deed, the freehold island off Tasmania’s northeast coast is now owned by a company registered in Victoria belonging solely to the 52-year-old CEO. Manton noted that the new owner intends to use the island as a private vacation home. However, in future, there might be plans to develop an eco-friendly project there for tourists.
Despite its secluded location, Waterhouse Island has mobile phone reception and a permanent power supply, making it a perfect spot for visitors who still want modern conveniences while enjoying the island’s pristine grassland, rolling hills and rugged coast.
Aside from the airstrip, jetty and lighthouse, there’s also a three-bedroom colonial-style homestead with a cottage guesthouse. The island has a total area of around 300ha, of which more than 106ha has been set aside for conservation in 2011 by the state government.
“This is probably the largest freehold island off Tasmania that has transacted in at least the past decade,” said Manton.
While Australia is surrounded by thousands of islands, sales of entire individual islands are few and far between. In Tasmania, it is estimated that there over 4,000 islands and rocky outcrops, but only nine are freehold. Islands recently put up for sale include Elizabeth Island near Melbourne, and Queensland’s Duke Group Archipelago — which consists of three islets being sold for about AU$12 million.
Qatar sovereign wealth fund buys Asia Square Tower 1
Sovereign wealth fund, Qatar Investment Authority (QIA) on Monday (6 June) announced it has reached an agreement to buy Asia Square Tower 1 from BlackRock for S$3.4 billion.
According to JLL, one of the advisors for the sale together with CBRE, the transaction represents the largest ever single-tower real estate deal in the Asia Pacific region and the second largest single-tower real estate transaction globally.
The 43-storey Grade A office building, located in Singapore’s Marina Bay financial district, comprises more than 1.2 million sq ft of Grade A office space and nearly 40,000 sq ft of retail space, BlackRock and Qatar Investment Authority said in a joint statement, adding that the building’s anchor tenant is Citi Group.
“Following this flagship transaction, we expect there will be increasing investor interest in Singapore prime office stock in the coming months,” says JLL head of Capital Markets Singapore, Grey Hyland.
Before the sale, it was reported that Asia Square Tower 1 received interest from a variety of companies and funds, including Norway’s sovereign fund and Keppel Group’s property arm Keppel Land.
In October last year, Singapore property developer CapitaLand also confirmed it was in talks with BlackRock, but later on pulled out of the deal. While CapitaLand did not cite a particular reason, it said it “will continue to explore opportunities which fit in the group’s strategy and the terms of which allow the group to generate the required returns”.
Meanwhile, BlackRock remains the owner of the second tower at Asia Square.
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