THE show must go on. And at Suntec Singapore International Convention & Exhibition Centre, it has, downturn notwithstanding.

The meetings, incentives, conventions and exhibitions (MICE) venue hosted about 1,400 events and welcomed 6.7 million visitors in 2009, a 5 per cent increase in visitors from 2008.

All MICE sectors delivered robust growth, Suntec said in a statement. And it believes that it will do well again this year as it expects to host regular and new events.

Chief executive Pieter Idenburg said: ‘Having emerged from a challenging but fruitful year in 2009, 2010 will be significant for us. We will host several new and returning shows, with an exciting line-up of events that are paramount in their fields, such as the inaugural Youth Olympic Games.’

Events the venue is set to host this year include The Internet Show 2010, the 10th World Congress of Bio-ethics and 8th Asia-Pacific Harmonica Festival 2010.

Repeat events, such as the Singapore Garden Festival 2010 and CityScape Asia 2010, will also be held at the centre.

Source : Business Times – 7 Jan 2010

KASARA The Lake, an exclusive development of 13 luxury villas in ultra-posh Sentosa Cove, was formally launched yesterday after well-heeled VIPs snapped up half a dozen of them last month.

Six out of the seven villas put on sale initially were sold during the preview, open only to VIPs. Of those villas sold, the biggest 15,070 sq ft villa went for a little over $22 million.

The developer did not disclose just what type of VIPs the buyers were, except that three were Singaporean and the others foreign – Asian and European, including one Singapore permanent resident.

The positive response from Kasara’s preview despite the festive market lull reflected significant demand in the luxury property market, according to YTL Singapore managing director Kemmy Tan.

YTL Singapore is the developer of Kasara, as well as another project, Sandy Island, at Sentosa Cove.

The villas, ranging in size mainly from 9,000 sq ft to 10,000 sq ft, were launched at a price of about $1,610 per sq ft (psf). A single 14,600 sq foot villa is still up for grabs for anyone with a spare $15 million or $20 million or so.

Consultancy Savills Singapore managing director Michael Ng said the price would probably be raised gradually to $1,700 psf on average.

The posh development offers a view of the lake facing the Serapong golf course and a pool that has been designed to extend slightly above the lake amid a landscape of bamboo and eucalyptus trees.

The developer is counting on the prospect of the upcoming Sentosa integrated resort to help attract buyers.

Ms Tan said: ‘Foreign demand is increasing due to the presence of the integrated resorts, and Sentosa Cove, being the only area where foreigners can buy landed property, is well placed.’

DTZ South-east Asia executive director and head of consulting Ong Choon Fah said Singaporeans now formed a smaller proportion of buyers at the cove.

‘In the past two years, Singaporean buyers have decreased to 37 per cent (from about 50 per cent). The balance of 63 per cent are foreigners, permanent residents or companies.’ The profile of foreigners has widened to include those from Britain, the United States, Russia, Malaysia, India, Europe and Australia.

Ms Tan said the wealthy are gradually returning to the market, which is evident in deals done. Prices at Sentosa Cove rose to an average of $1,500 psf around the third quarter of last year from $1,100 psf to $1,200 psf in the first quarter of last year.

According to Savills’ analyses of Sentosa Cove Realis data, 80 per cent of transactions took place in the second half of last year when 25 sales were made – far higher than the five in the first half.

Savills said that 16 sales recorded in the fourth quarter did not include the sales of Kasara villas.

Ms Tan believes interested parties will buy now to take advantage of anticipated future price gains given the limited supply of about 320 properties at the cove and an expected upswing in demand.

Savills is suggesting that Sentosa Cove is undervalued.

‘The luxury end is a laggard. Investors are coming in now as they see a lot of upside in the high-end segment, where prices are still 25 per cent to 30 per cent away from the previous peak,’ said Mr Ng.

All bets seem to be on the high-end luxury market this year, according to industry players. They believe that if Kasara The Lake continues to be successful, this could encourage developers back into the high-end property segment.

Mrs Ong cited the example of CapitaLand’s recent Urban Suites launch, and speculated that projects located on the fringes of traditional prime districts might follow suit and get going again.

Source : Straits Times – 7 Jan 2010

LAST year’s unexpected property boom has delivered an unwanted side effect: a spike in complaints against renovation contractors.

Already, the Consumers Association of Singapore (Case) has charted a 20 per cent jump in the last year, and it says it expects the situation to worsen further this year.

The rise in complaints came on the back of a spike in resale property purchases, which prop up the renovation business.

Resale transactions for private homes more than quadrupled between the first and third quarters, while those for Housing Board flats went up by 80 per cent.

The number of complaints against renovation contractors rose in tandem, going from 189 in the first quarter of last year to 226 in the third quarter.

Although the final figure for the fourth quarter is not yet available, the number of complaints had hit 832 by the end of November.

Mr Seah Seng Choon, Case’s executive director, said: ‘We expect the number of complaints to increase as the improving economy results in both the number of home purchases going up and more consumers embarking on renovations.’

He said some cases involved contractors who cheated their customers, while others delivered poor quality work.

Whatever the reason, the results were the same: work that fell far short of customers’ expectations.

Among last year’s complaints, a number arose out of contractors promising to use quality materials, but settling for inferior fittings instead.

One complainant’s doors started warping after a week; another had flimsy wardrobe shelving that collapsed shortly after installation.

Other complaints included long delays in renovation, failure to honour contract terms and, in a few cases, contractors making off with their clients’ money midway through the works.

Mr Seah warned that as the renovation business hots up, contractors would stretch whatever resources they have, which may make matters worse.

They will also find it hard to hire and keep their good workers.

‘Because of the high turnover in workers, the skills won’t be there,’ he added.

Air-conditioner installer Brendan Tay said finding skilled workers was part of the problem.

‘The local ones don’t want to do this kind of work any more, and those from China want to go back after earning enough money,’ he said.

But some homeowners feel that contractors are choosing to hire cheap labour rather than pay for skilled workers, with predictable results.

One homeowner, who wanted to be known only as Mr Woo as he is planning legal action against his contractor over a botched job, said: ‘Comparing my latest renovation to the previous one 10 years ago, the quality has really dropped because of cheaper workers from China. Their work is not so good.’

One recent victim is marine manager Michael Chong, who bought a semi-detached house in Seletar Hills and had planned to move in by September last year.

First, his contractor demolished more than what was agreed upon, causing a legal headache for Mr Chong as his permit allowed for only alterations and additions.

Then the project was mired in delays, and the contractor became uncontactable. By then, Mr Chong had already paid out $55,000.

The house remains unfinished. Mr Chong, 50, said he intends to take the contractor to the Small Claims Tribunal.

‘I shouldn’t have trusted him so much,’ he said.

Case’s Mr Seah noted that the renovation business has consistently been among the industries attracting the most complaints.

Hoodwinked homeowners interviewed by The Straits Times called for tighter legislation, such as requiring renovation contracts to follow a basic template and drawing up a blacklist of dishonest contractors.

But Mr Seah said: ‘Regulation will not stop people from shutting down and popping up under another name.

‘At the end of the day, it must be the consumer who ensures the contractor complies with requirements.’

Source : Straits Times – 7 Jan 2010

THE Consumers Association of Singapore (Case) suggests that those about to renovate their homes:

~ Check the licences, accreditation and credentials of the firms they have hired.
~ Request quotations from more than one design firm.
~ Discuss proposed designs and project schedules with the designer.
~ Vet thoroughly not only the colour schemes, but also the materials to be used and the dimensions.
~ Note the capabilities of the contractor engaged by the interior designers to execute the proposed designs.
~ Check that the contract lists the products and services and that the bill is itemised.
~ Set up a schedule with clear deadlines.
~ Set up a progressive payment schedule. Payment should not be made in full upfront.
~ Document and take photos of outstanding defects in case of disputes.
~ Refer to the list of accredited CaseTrust contractors available at www.casetrust.org.sg
~ Use a model agreement on home renovation, which can be found at www.case.org.sg/model_agreements.html
~ Refer to the Building and Construction Authority’s guides on good industry practices. The website can be found at www.bca.gov.sg/Publications/EnhancementSeries/enhancement_series .html
~ Seek the assistance of Case or file a claim with the Small Claims Tribunal if a dispute is unresolved.

Source : Straits Times – 7 Jan 2010

Outlook for this segment positive as it still has room to move up

LUXURY homes continued to sell well right to the end of 2009, updates from two developers show.

Malaysia-based YTL Corporation has sold six of the 13 villas at its Kasara project at Sentosa Cove, at prices ranging from $14 million to $22 million. This works out to about $1,600 per sq ft on average.

And on the mainland, CapitaLand has sold 60 apartments in the 165-unit Urban Suites condominium in the Cairnhill area, at prices ranging from $2,400 to $2,700 psf.

YTL sold the six villas in November and December through private previews. It will officially launch the remaining seven villas tomorrow.

CapitaLand started preview sales in Singapore for phase one of Urban Suites – on the former Char Yong Gardens site in Hullet Road – just before Christmas. Sixty units were released in phase one and sold to buyers prepared to purchase more than one.

CapitaLand, which is developing the project with Wachovia Development Corporation, plans to launch the second phase, comprising about 50 units, in Jakarta next week.

Both CapitaLand and YTL say the brisk sales indicate the luxury market is picking up.

‘The successful launch of Urban Suites is testament to buyers’ confidence in the fundamentals of the Singapore economy and the growth potential of the high-end property segment,’ said Patricia Chia, chief executive of CapitaLand’s residential arm.

YTL Singapore director Kemmy Tan said: ‘The mass market segment was the key driver last year, so the luxury segment still has room to move up. We are very positive on the outlook for 2010.’

At Kasara, selling prices will be bumped up slightly with the official launch. The villas, which range from 9,000 sq ft to more than 14,000 sq ft, will now be sold for an average $1,700 psf.

They were designed by DP Architects and aim to combine Asian architectural style with European interiors and fittings.

YTL said the six homes sold so far have been bought by Singaporeans and foreigners from the Asia-Pacific and Europe. Sentosa Cove is the only place in Singapore where foreigners can own landed property without special permission.

Over at Urban Suites, about two-thirds of the buyers are foreigners from countries including China, Australia and Canada. Most buyers bought two units, CapitaLand said.

It gave a one per cent discount to buyers who picked up more than one unit. Buyers have a choice of two, three and four-bedroom apartments as well as duplex and triplex penthouses. The units range from 1,044 sq ft to 4,715 sq ft.

Analysts say CapitaLand can be expected to raise prices for subsequent phases.

In a note yesterday, DBS Group Research analyst Adrian Chua said the prices achieved for the 60 units transacted so far exceed his expectation of $2,400 psf. ‘We continue to advocate going for the high-end property developers,’ he said.

Source : Business Times – 7 Jan 2010

LTA, Sentosa roll out measures to raise accessibility as they prepare for IR opening

SENTOSA and the Land Transport Authority (LTA) are spending $300 million to bolster infrastructure, widen roads and put new trains on the island’s monorail tracks as they prepare for the opening of Resorts World Sentosa – Singapore’s first integrated resort.

‘We expect Sentosa’s annual visitor numbers to more than double in the coming years,’ said Mike Barclay, chief executive of Sentosa Development Corporation. The island gets about 6 million visitors a year now, but this is expected to rise to 15-20 million visitors over the coming years.

The measures taken by Sentosa Development Corporation and LTA are intended to facilitate access to Sentosa across all modes of transport, Mr Barclay added.

They are focused on three main areas: improving the road infrastructure in and around Sentosa; increasing the capacity and variety of public transport options between the mainland and Sentosa and also within Sentosa itself; and reviewing the pricing strategy of the various modes of transport into the island.

There will be changes to the gantry and car park charges to encourage visitors to take public transport, car pool or share cabs during peak hours.

‘We urge the public to take advantage of public transport to go to Sentosa and the resort,’ said LTA chief executive Yam Ah Mee.

For example, the existing charges are $2 for each private vehicle as well as $2 for each visitor. This will be replaced with variable flat charges on a per vehicle basis. Under the new system, a vehicle can pay up to $7 to enter the island, regardless of the number of passengers in the car.

On the other hand, public transport will become cheaper in some cases. The price of the shuttle bus service into the island will be cut by $1. Sentosa has also increased the capacity of the monorail trains in the island.

Outside the island, LTA has completed several enhancements to the road network. These include the reconfiguration of the ramp system to the West Coast Highway viaduct, which was completed last month.

A second vehicular bridge – which runs parallel to the existing bridge – linking Sentosa to the mainland was also opened in September last year, doubling road capacity to and from the island.

And more plans are in the pipeline. Sentosa is looking to further improve links within the island and is looking at a second cableway system and a buggy service for hotel guests.

A tender has also been called to introduce shuttle services between Sentosa and Changi Airport, hotels, key shopping districts and Singapore’s heartlands by the second quarter of 2010.

Source : Business Times – 8 Jan 2010

FRASERS Centrepoint Trust (FCT) said yesterday that it will buy two suburban malls for $290.2 million.

The retail real estate investment trust (Reit) also said it plans to issue up to 152 million rights units to help finance the mall acquisitions. The remaining amount will be borrowed.

The structure and timing of the issue of new units has not been determined, FCT added.

The Reit will acquire Northpoint 2 at Yishun for $164.55 million and YewTee Point in Choa Chu Kang for $125.65 million from its sponsor Frasers Centrepoint, the property arm of Fraser and Neave.

The transactions are subject to approval by FCT unitholders. The two acquisitions will grow the trust’s portfolio 25 per cent to $1.5 billion.

‘Northpoint 2 and YewTee Point are excellent suburban retail malls strategically located in the town centres of established high-density housing estates,’ said Christopher Tang, chief executive of FCT’s manager.

‘Both malls are in the immediate vicinity of MRT stations, which deliver a high level of shopper traffic. With captive shopper catchments, occupancy rates at or close to 100 per cent and diverse bases of quality tenants, both malls would be invaluable additions to FCT’s portfolio of high-quality suburban malls.’

The trust now has three malls – Causeway Point, Northpoint and Anchorpoint. Northpoint 2, a new extension to Northpoint, has a net lettable area of 85,530 sq ft. YewTee Point has 72,382 sq ft.

FCT said the two additions will enhance its asset, income and tenant diversification, the trust said. The malls will add more than 70 new tenants. And the larger asset and unit base – after the issue of the rights units – is expected to enhance the trust’s overall capital management flexibility.

FCT said that the price of the rights units will be determined closer to the launch date.

FCT units gained four cents or 2.8 per cent to close at $1.45 yesterday.

Source : Business Times – 8 Jan 2010

New venues pique interest and could snatch meetings, conventions and exhibitions from incumbents

They just emerged from a challenging year, but meetings and exhibitions executives now have to prepare themselves for a tougher campaign ahead.

Once the integrated resorts (IRs) are launched, the amount of exhibition space in Singapore is going to jump by a whopping 180,000 square metres – not a number to sniff at since current big players have only about 135,000 sq m between them.

And if you throw the glitzy lights of Broadway musicals and the whirring sound of the jackpot machines into the mix, it’s no wonder that current meetings, incentives, conventions and exhibitions (MICE) players are bending over backwards to keep their clients happy.

And the incumbents certainly have their work cut out for them.

Already, Marina Bay Sands (MBS) and Resorts World at Sentosa (RWS) have snagged over 60 events running until 2012.

It doesn’t help that the new kids on the block also have the novelty factor in their favour.

According to Nancy Tan, managing director at conference organiser Ace:Daytons Direct, the two IRs piqued interest as far back as two years ago.

There were clients who requested for the IRs as an option when selecting venues, she told BT. ‘People want to try new venues.’

However, she added, that the venue needs to match event requirements, something that could go either way for both incumbents and the new players.

For instance, depending on the scale of the business event, a certain number of hotel rooms may also have to be booked at MBS. This may not be entirely suitable for conferences where delegates pay out of their own pockets for their hotel rooms, she pointed out.

On the other hand, Gaming Asia – which took place at the Expo last year – will be held at MBS from July 15-16. The new location is ‘ideal’ given that the exhibition is casino and gaming-related and that MBS is in the central business district, said Lynn Ee, marcom executive with organiser ComExpo Pte Ltd.

Gaming Asia, which attracted nearly 1,500 visitors last year, is widening its focus this year to include training and education opportunities within the industry, security as well as merchandising, in addition to gaming equipment.

Still, there’s an element of musical chairs going on with the same events making the rounds at different venues.

For instance, MBS’s firmed-up list shows that events such as the Aerospace Supplier eXchange – which took place at the Singapore Expo last year – will move to MBS in 2011 and Sea Asia – which was held at Suntec Singapore International Convention & Exhibition Centre last April – will shift to MBS in 2011.

But if there’s a silver lining for MICE players, it’s that this doesn’t seem to be a zero-sum game because the IRs seem to be opening up the scene by attracting new events to Singapore.

RWS will host World Urban Transit Congress in October as well as Singapore LIVE – in conjunction with Singapore Arts Fest – in June. And at least six events in MBS’s line-up are new, including the Industrial Fabrics Association International Expo Asia 2011 and Dye+Chem Asia International Expo 2010. The 2010 UFI Congress, which will be held at MBS, will also make its way back to Singapore after 15 years.

MBS believes that the IR offers consumers greater choice and will ultimately grow the industry.

‘The integrated design means we can provide convenience and efficiency. This translates to significant cost savings,’ added the MBS spokesman.

‘Singapore already has excellent existing MICE facilities and RWS is working in close partnership with them to create more reasons for repeat visitorship,’ highlighted RWS’s director of MICE, Elena Arabadjieva.

To compete, industry players such as Suntec recognise they have to go ‘beyond the call of duty’ and stay ‘flexible’, so as to keep clients happy.

To drum up strong business for this year, the Expo has increased its sales trips and marketing activities, and has also just appointed a US agent.

Every year, Singapore hosts more than 6,000 business events. According to the Singapore Tourism Board (STB), the business travel and MICE industry brought in nearly $6 billion in tourism receipts in 2008, which is close to 40 per cent of total tourism receipts.

While 2009 figures have yet to be released, the year was a fairly challenging one for the MICE industry.

There was a drop in attendance and, in some cases, budgets were revised by as much as 20-25 per cent, said Ace’s Ms Tan.

‘While all (organisers and exhibitors) went ahead with their scheduled show dates, they were conscious of their budgets,’ said Chandran Nair, deputy general manager of Singex Venues, which manages the Expo.

In 2009, Suntec hosted about 1,400 events – down slightly from 1,575 events in 2008. However, at 6.7 million visitors, it also saw a 5 per cent increase in visitor numbers over 2008.

And with the economy showing signs of recovery, the MICE scene could see a far better year in 2010. Tony Lai, assistant chief executive at STB, felt that the tourism industry was well-placed to seize opportunities.

Source : Business Times – 8 Jan 2010