Tag Archives: City Development

Renowned foreign architects spice up Singapore’s building design landscape

Developers are turning to renowned foreign architects to add brand cachet to their building projects.

Some 12 foreign architects have lent their names to at least 14 new private residential launches and projects under construction.

The late Paul Rudolph and Mosche Safdie were among the first foreign architects to enter Singapore’s residential market in the mid-80s.

They are now joined by more than a dozen illustrious names, including Ole Scheeren and Daniel Libeskind.

Mr David Neubronner, Head of Residential Project Sales at Jones Lang LaSalle, said: “It is a branding thing and using a foreign, renowned architect for condominiun here to get a premium for the development and in terms of design wise, they do come out with nicer design.”

Backed by the reputation of these architects, developers have been able to price these projects at some 5 to 10 percent above market rates

In fact, one analyst says the Safdie name has helped Sky Habitat – touted as an iconic development in the heartland – to command a 30 to 35 percent premium over neighbouring developments.

With a site next to Sky Habitat included in the recent Government Land Sale programme, some are wondering if the winning developer will also market it as a brand-name development.

Mr Tay Kheng Soon, Principal Architect of Akitek Tenggara, said: “The use of brand-name architects is part of the old success model which is designed to stand out from the crowd. But, everyone can do that so there is no advantage anymore.”

He feels that Singapore needs a new model for success, one that will premise on becoming the creative centre of innovation and enterprise in Asia.

Mr Jerry Tan, Founder of Jerrytan Residential Pte Ltd, said: “It could be part of their marketing spiel and to add a bit more possess into the whole scheme of things. But, whether foreign, local big or small, I think at the end of the day, end users in today’s market look at the practical side of things whether the internal layouts also fit their needs.”

Niche luxury developer, SC Global prides itself on only using local designers for their projects, while other developers like Capitaland, City Development, Keppel Land and Far East have been known to rope in big names for their projects.

Mr Theodore Chan, President of Singapore Institute of Architects, said: “Attaching your design to a brand-name architect, it sells, I think it is a difficult thing to fight against.

“There is no shortage of talent in Singapore with our local architects as you can see with some of our top buildings that the SIA has awarded, and some of them have even gone to win international awards.

“So you look at it, the talent is there, the qualities of the buildings are there. Perhaps, what is not there is the opportunity to do large and high profile projects.”

Still, they say Singapore architects have been responsible for award-winning iconic projects such as The Pinnacle at Duxton.

Source : CNA – 2012 Jun 21

Clouds clear for property developers

Barely a month ago, developers were still bogged down by worries that persistently strong property data could trigger more government measures to cool the housing market.

But now, these concerns seem to have dissipated quickly, with at least one research house upgrading its rating to “buy” for developer stocks and economists expecting the construction sector to continue its growth momentum after a surprisingly strong showing in the first three months of the year.

In a Monetary Authority of Singapore survey of private sector economists, which was released yesterday, the 21 economists revised upwards their median growth forecast for the construction sector for the full year by almost four-fold, from 1.7 per cent to 6.2 per cent.

The sector grew 7.7 per cent in the first quarter, much higher than the median estimate of 1.1 per cent in the previous survey in March.

DBS economist Irvin Seah said: “The growth came in as a huge surprise and the construction sector remains buoyant with a healthy pipeline of infrastructure projects and residential property developments.”

In a research note on Tuesday, Standard Chartered Equity Research analysts upgraded its rating for developer stocks “as policy overhang lifts, wages rise and nominal home prices hold up”. In particular, it upgraded its rating to “outperform” for CapitaLand and City Development.

CapitaLand shares closed 1.83 per cent down at S$2.68 while City Development shares closed 0.3 per cent higher at S$10.16 yesterday.

According to the StanChart analysts, about one in five developers here expect housing prices to rise going forward, compared to none in the first three months of the year.

They said: “Wages surprised on the upside last year by rising 6.4 per cent. Housing affordability improved in the year as residential prices only rose 6 per cent … We expect the Government to continue to drive income growth.”

They believe that no further cooling measures are on the cards.

“After five rounds of cooling measures, the private residential price index fell 0.1 per cent (in the first quarter) for the first time since 2009. Foreigners buying of private homes fell 78 per cent (in the first quarter). Public housing resale volumes and prices have also moderated,” the StanChart analysts said.

Property analysts TODAY spoke to agreed the Government’s cooling measures have taken hold and further sweeping measures are unlikely, given that property prices are softening.

IPA chief executive officer Ku Swee Yong said the broader risks of homebuyers overborrowing, people dipping into the market for a quick profit, as well as the problem of investors buying additional properties have been addressed.

“The measures have built a rather strong foundation,” he said. Major curbs are unlikely, although “very targeted” measures, such as to deal with shoebox apartments, could still be implemented, he added.

SLP International head of research Nicholas Mak added: “Speculation is down, price growth is down, and there’s a cautious investment climate because of the external economic outlook. If there are any more drastic measures, it could have unintended negative effects.”

Just last month, brokers were advising investors to avoid Singapore-focused residential developers.

But now, there is consensus among analysts that the removal of policy risks, a continued higher supply of land flowing into the market, as well as a healthy outlook on wages and employment could put some glean on developer stocks too.

Yesterday, the Ministry of National Development also announced it will supply 15 Confirmed List sites and 24 Reserve List sites in its Government Land Sales Programme for the second half of this year. This could yield 14,200 new private residential units.

HSR Property Group special adviser Donald Han predicted residential prices will show a downtrend in the flash estimate for the second quarter.

He also pointed out that developers’ bids for land this year have been at “reasonable levels”, which leaves room for profit in the next 12 months.

Source : Today – 2012 Jun 14