Monthly Archives: November 2009

Catch the buzz, fine-tune the theme park pricing

Catch the buzz, fine-tune the theme park pricing

It is just a matter of months now until the grand opening of the Universal Studios theme park in Singapore, but that excitement was tempered somewhat when the much-awaited ticket prices were finally made public on Wednesday.

Those who had been hoping for something more affordable would certainly have been baulking at the admission costs, because an outing to the famous attraction – South-east Asia’s first and only Universal Studios – will not come cheap.

A one-day weekend pass will cost $72 for adults, $52 for children and $36 for senior citizens. Visiting on weekdays will be slightly easier on the wallet – $66, $48 and $32 respectively.

Let’s do the math: A typical family of, say, two adults and three children planning an outing to the theme park on a Saturday will have to fork out $300 in ticket charges alone. Driving into Sentosa will cost an extra $12 ($2 per person and $2 for the car), and at least another $3 in car park fees on the island. Factor in some exorbitantly priced meals, snacks and a souvenir or two and a day’s outing could easily come up to well over $400.

Staying at one of the Sentosa integrated resort’s (IR) hotels is also going to set one back a fair sum. The rates for three hotels have since been made public – deluxe rooms at the Festive Hotel start at $400 a night, it’s $450 to stay at the Hard Rock Hotel and $500 at Hotel Michael.

My initial worry is that many Singaporeans, particularly from the lower-income groups, will probably never get the chance to visit and enjoy the theme park, even if there are some subsidies thrown in.

If Resorts World Sentosa (RWS) wants to realistically achieve its target of seeing up to 30,000 visitors at Universal Studios each day, there are no two ways about it: attracting the locals is their best hope.

Getting them to visit – and multiple times, at that – is key for any attraction if investment costs are to be recouped. The tourist segment is crucial, too, but most foreigners would likely visit the theme park just once and then choose to see other attractions on subsequent visits.

Singapore’s ticket prices are cheaper than Universal’s two other attractions in Orlando, Florida in the United States, and in Osaka, Japan, which cost US$79 (S$109) and 5,800 yen (S$90) respectively for a full-day pass.

Over at Disneyland in Hong Kong, an adult ticket goes for HK$350 (S$63), while Disneyland in Paris charges 52 euros (S$107).

But interestingly, Universal in Florida charges residents there much lower ticket prices – US$55 for an adult full-day pass if one buys the tickets online. RWS, however, has kept mum so far about whether there would be a similar incentive for entice more Singaporeans to visit.

A spokesman was, however, quoted in reports yesterday that there would be tie-ups with RWS’ local partners to offer Singaporeans attractive packages and rates, particularly for off-peak periods.

It would be wise to hook locals from the start by offering family package discounts, or allow children under 12 to enter for free, or perhaps giving ticket-holders vouchers that can be exchanged for drinks, snacks or a souvenir – anything that will make the experience as memorable and positive as possible.

Leaving a lasting first impression would go a long way to making sure that locals will want to return again. After all, as the RWS spokesperson was quoted as saying, the Sentosa IR where the theme park is housed is ‘a place for every Singaporean’ and it is in the interest of the IR to ‘reach out to everyone, not forgetting grandmas and grandpas’.

The buzz surrounding Universal Studios Sentosa has been amplifying over the past few months. I know of many friends who are chomping at the bit to try the world’s tallest duelling rollercoaster or step inside the world’s first Far Far Away Castle from the Shrek movies.

If RWS plays its cards right from the get-go, it could be decisive in ensuring that the theme park remains a hit with Singaporeans and not go the way of forgotten and now-defunct attractions such as Tang Dynasty City in Jurong and the Fantasy Island water theme park in Sentosa.

Source : Business Times – 20 Nov 2009

Singapore Property : Serangoon Ave 3 condos top $600 psf

The Serangoon Avenue 3 area came into focus last month when Hong Leong Holdings won a land parcel there in a government tender with a bid of $221 million, which works out to $529 psf per plot ratio. Property consultants expect the breakeven price for the future condominium project to be between $900 and $950 psf. Hong Leong says it intends to develop the site into a 400- unit condo, which is targeted for launch in 1H2010.

The proposed project has ignited the interest of some homebuyers and investors, and there was a flurry of activity in some of the condos along Serangoon Avenue 3 in the week of Oct 16 to 23. Five units changed hands in the resale market in Amaranda Gardens, Chiltern Park and The Sunnydale.

At the freehold condo Amaranda Gardens, developed by Keppel Land and completed in 2004, a 1,162 sq ft unit changed hands for $1.048 million, or $901 psf, according to a caveat lodged with URA Realis. The owner had purchased the unit when it was launched in 2001 for just $730,688 ($629 psf), which translates into a 43% capital gain for the seller.

The 500-unit Chiltern Park, located on Serangoon Avenue 3 and off Lorong Chuan, saw three units changing hands at prices ranging from $617 to $721 psf, and that has set the tone for the area. The 99-year leasehold project was developed by First Capital Corp (now GuocoLand) in 1995. It is located opposite Nanyang Junior College and near St Gabriel’s Primary School, the Australian International School in Lorong Chuan as well as the temporary campus of the Stamford American School.

The development is popular with families with schoolgoing children, says Knight Frank property agent Kenneth Yeo. He says Chiltern Park is also just a short drive to New Tech Park in Serangoon Gardens and one stop along the Circle line from the Serangoon MRT station and bus interchange, which will be integrated with the new shopping mall, nex, in Serangoon Central.

A 1,571 sq ft unit on the seventh floor of Chiltern Park was sold for $980,000 on Oct 21. The owner had purchased it in 2007 for $610,000, hence, reaping a gain of 60.6% in two short years. Prior to that, the unit had changed hands for $590,000 in 2002 and at the peak of the market in 1996, it was transacted for $1.08 million. Another 936 sq ft unit on the fifth floor went for $675,000, or $721 psf. The owner had purchased the unit in 2007 for $608,000, or $649 psf, hence seeing an 11% appreciation over the last two years. Most recently, a 1,572 sq ft unit on the fourth floor of one of the three towers was sold for $970,000, or $617 psf.

The Sunnydale, a 99-year leasehold condominium developed by MCL Land and completed in 2001, saw a sole transaction. A 1,345 sq ft third-floor unit sold for $900,000 ($669 psf). The previous owner purchased it in a resale for $620,000 ($461 psf) in 2003, hence making a gain of 45%.

Property agents like Yeo note that transactions have slowed this month, and it could be the effect of the recent measures taken by the government to cool the property market, such as the removal of the interest absorption scheme and interest-only home loans for new launches, and also the record number of land parcels released in the recent government land sales programme. This should be good news for genuine homebuyers.

Source : The Edge – 16 Nov 2009