Wing Tai Holdings on Friday announced a profit of S$22.3 million for the fiscal second quarter.

This was a 7 per cent increase from the corresponding period last year.

Revenue for the quarter came in at S$177 million.

This was a 93 per cent increase from the same period last year.

For the half-year ended 31 December 2009, the Group posted a revenue of S$454.3 million.

This was a 101 per cent increase from the corresponding period the year before.

The increase was mainly due to the higher contributions from the development properties division as more units were sold.

This included units sold in Belle Vue Residences and the progressive sales recognised from The Riverine by the Park in Singapore.

Based on the growth forecast of the Singapore economy and its expected positive impact on the property market, the Group said it will focus on marketing new residential projects and releasing more units for sale this year.

Source : Channel NewsAsia – 5 Feb 2010

GuocoLand has recorded a remarkable recovery in its second-quarter net profit.

The property developer posted a net profit of S$60.4 million for its second quarter ending December 31, a hefty increase from its earnings of about S$900,000 a year ago.

The higher profit contribution for the second quarter was mainly from property development projects in China.

Strong sales from its Ascot Park development and the sale of an office block in the Changfeng project contributed to the higher earnings in the quarter.

Revenue for the quarter also jumped 284 per cent to S$363.7 million from the same period last year.

Administrative expenses for the second quarter increased by 46 per cent to S$13.1 million.

This was mainly due to due to higher staff expenses and other administrative expenses.

Despite concerns about potential risks of an asset price bubble, the Group said that it still enjoys healthy sales in its property development projects in Singapore and China.

Looking ahead, the Group said it will continue to source for land for development, and prime its launch-ready projects for sale at the right time.

Source : Channel NewsAsia – 5 Feb 2010

RITA Soh, director of RDC Architects Pte Ltd, has been elected the new president of the Board of Architects Singapore (BOA).

The new 15-member board, which started its three-year term on Jan 1, 2010, comprises three ex-officio members, six members appointed by the Minister for National Development, and six members elected by the architect community.

The BOA is a statutory board under the Ministry of National Development, set up to enhance architectural practice in Singapore.

Ms Soh said: ‘BOA will continue to work closely with the Singapore Institute of Architects (SIA) to highlight the importance for all architects in Singapore to practise ethically and professionally.’

She intends to provide opportunities for architects here to ‘keep abreast of changes in the industry and technology’. She added that BOA hopes to encourage more young people to ‘join the profession’.

To this end, the board will continue to work with relevant institutions, such as the National University of Singapore (School of Design and Environment).

These institutions will aid the BOA in ‘facilitating education and training opportunities’, said Ms Soh.

She succeeds Chan Sui Him, who served nine years as BOA president.

He spearheaded various initiatives during his tenure as president, such as the introduction of the Professional Practice Examination Candidate system.

He also oversaw the streamlining of the professional registration examinations, increased the transparency of the board’s disciplinary proceedings, and pioneered an election system to give professional architects greater say in selecting board representatives.

Mr Chan led BOA in a series of discussions on the mutual recognition agreements (MRA) to improve the mobility of architects for the provision of services throughout the Apec and Asean regions.

The board stated that it has greatly benefited from Mr Chan’s leadership and placed on record its appreciation.

Members of the new board include Ashvinkumar s/o Kantilal, president of SIA, and Ong See Ho, commissioner of building control.

MALAYSIAN tycoon Quek Leng Chan’s Singapore-listed property unit GuocoLand has posted net earnings of $60.4 million for the second quarter ended Dec 31, 2009, a significant jump from the $861,000 earnings in the same year-ago period.

The improvement was due mainly to China property development projects on the back of strong sales from Ascot Park condo in Nanjing and the sale of an office block in an integrated mixed development project in Shanghai’s Changfeng district.

In Singapore, the group is expected to preview a couple of condominium projects after the Chinese New Year festivities – Goodwood Residence along Bukit Timah Road and Waterline on the former Toho Gardens site at Yio Chu Kang Road. In 2008, GuocoLand sold 36 units in the 210-unit Goodwood Residence to Kuwait Finance House for $2,800 per square foot.

For Q2, share of profit after tax from associates fell 77 per cent to $1 million due to lower revaluation gains on investment properties recognised by Tower Reit in Malaysia. Income tax expense rose from $3.6 million to $25.5 million on the back of higher profit contribution from China development projects.

GuocoLand’s Q2 revenue rose 284 per cent to $363.7 million.

For the first half ended Dec 31, 2009, GuocoLand achieved net profit of about $72.8 million, against a net loss of nearly $2 million in the same year-ago period. Revenue increased 85 per cent to $459.4 million. The group said that its 1,112-unit Ascot Park is almost fully sold. At its Changfeng project, it has sold about 70 per cent of small office, home office units. In November last year, GuocoLand sold an office block in the same project for 1 billion yuan (S$208.4 million).

In Singapore, construction of the 272-unit Sophia Residence, which is more than 90 per cent sold, has not begun. The 119-unit Elliot At The East Coast, which is about 70 per cent sold, is at an initial phase of construction.

GuocoLand’s cash and cash equivalents rose from $581.8 million as at end-June 2009 to almost $711 million at end-December 2009, due to proceeds received from sales of development properties. No dividend has been declared.

Looking ahead, the group noted it has enjoyed healthy sales in its property development projects in Singapore and China. ‘As part of the ongoing review of its strategies, the group will continuously source for land for development, and prime its launch-ready projects for sale at the right time,’ GuocoLand said in its results statement.

On the stock market yesterday, GuocoLand closed 12 cents lower at $2. The fall came amid a general retreat in the market.

Source : Business Times – 6 Feb 2010

A SURGE in revenue and a fair value gain on investment properties helped Tuan Sing Holdings achieve a net profit of $23.32 million for the fourth quarter ended Dec 31, 2009, compared with a net loss of $13.57 million a year ago.

Revenue for the quarter was up 168 per cent at $82.13 million. A $33.3 million fair value gain on investment properties – offset by a $28.3 million charge (being share of exceptional items of equity-accounted investees) – resulted in one-time gains of about $5 million, against one-time losses of $3.5 million for the previous Q4.

For the full year 2009, net profit was $44.73 million, up from $2.69 million the previous year.

Revenue for the 12 months grew 4 per cent to $252.91 million. The higher revenue from property cushioned the impact of lower revenue from industrial services and retail.

Earnings per share were 2 cents for 4Q2009 and 3.9 cents for FY2009 respectively, as compared to a negative 1.2 cents for 4Q2008 and 0.2 cent for FY2008.

Tuan Sing said that it is cautiously optimistic about 2010 and is on the lookout to buy land for development in the region and China. ‘Although the worst of the economic crisis appears to have passed, the group enters year 2010 with cautious optimism,’ it said in its results announcement.

It declared a first and final dividend of 0.3 cent per share for 2009. No dividend was declared for the fourth quarter and full year ended Dec 31, 2008.

Tuan Sing shares closed trading yesterday at 23.5 cents.

Source : Business Times – 6 Feb 2010

WING Tai Holdings yesterday reported a 7 per cent climb in fiscal second quarter net profit to $22.3 million from $20.9 million a year earlier as it sold more homes.

The rise in earnings for the three months ended Dec 31, 2009, came on the back of a 93 per cent surge in revenue to $177.1 million from $92 million a year ago. Q2 earnings per share climbed to 2.87 cents in Q2 from 2.67 cents the previous year. Net gearing stood at 0.5 times as at Dec 31, 2009.

Wing Tai in 2009 capitalised on the improved property market sentiments and marketed three new residential projects – Belle Vue Residences, Ascentia Sky by Tanglin and The Floridian – which were well received by home buyers.

For the half year ended Dec 31, 2009, the group’s net profit rose by 28 per cent from $53.5 million to $68.7 million. Revenue doubled from $226.3 million to $454.3 million.

This increase was mainly due to the higher contributions from the development properties division as more units were sold over the six months, including units sold in Belle Vue Residences and the progressive sales recognised from The Riverine by the Park in Singapore, Wing Tai said.

Profits recognised from those projects also contributed to the increase in the group’s operating profit from $56.6 million to $126.0 million for the first half of its financial year – an increase of 123 per cent.

Looking ahead, Wing Tai said that it will focus on marketing new residential projects and releasing more units for sale in 2010.

The group cited the growth forecast of the Singapore economy and its expected positive impact on the property market as the reasons behind its strategy.

Analysts remain upbeat about the high-end residential market in 2010.

‘With the additional supply being part of the government’s strategy to keep upgrader housing affordable, we expect that this will provide some price resistance for the mass-market this year,’ said DBS Group analyst Adrian Chua in a note yesterday. ‘We continue to favour the high-end segment and developers that are more exposed to this segment.’

Wing Tai shares shed four cents to close at $1.76 yesterday amid a weak market.

A BOOMING property market on the back of a broad if tentative economic recovery last year has boosted the results of two mainboard-listed developers.

Guocoland posted a net profit yesterday of $60.4 million in its second quarter ended Dec 31 last year – a dramatic jump from just $861,000 earned in the same quarter a year earlier.

Boosted by positive sentiment and strong property sales, Guocoland’s revenue leapt 284 per cent to hit $363.7 million from the same period a year earlier.

Wing Tai Holdings posted a more modest 7 per cent rise in net profit to $22.3 million in its second quarter in the same three-month period. Revenue shot up 93 per cent to $177 million.

Guocoland said yesterday that its strong performance was mainly due to the strong sales of projects in China, especially Nanjing’s Ascot Park.

China’s property market has rallied in the recent year, in tandem with its growing economy. Asian markets have been leading a broad global recovery following the 2008 financial crisis.

For the half year ended Dec 31, Guocoland had a net profit of $72.8 million, reversing a net loss of $2 million in the same period a year ago. Revenue was also up 85 per cent to $459.4 million.

Closer to home, the group launched Sophia Residence in the Dhoby Ghaut area and Elliot on the east coast, which chalked up more than 90 per cent and 70 per cent sales respectively.

Earnings per share for the group were 7.27 cents for the second quarter, up from 0.1 cent previously. The group’s net asset value was $2.32 as of Dec 31, compared to $2.37 as of June 30.

Brisk sales in Singapore’s private residential market also gave Wing Tai’s financial performance a lift.

The group said it sold more homes at its Belle Vue Residences at Oxley Walk and The Riverine by the Park at Kallang.

For the half year, its net profit rose 28 per cent to $68.7 million, while revenue rose 101 per cent to $454.3 million.

Earnings per share for the group for the second quarter were 2.87 cents, up from 2.67 cents in the same quarter a year earlier. Its net asset value per share was $2.06 as of Dec 31, up from $2.03 as of June 30 last year.

Guocoland’s share price closed 12 cents down at $2 yesterday, while Wing Tai Holdings closed four cents lower at $1.76.

Source : Straits Times – 6 Feb 2010

PROPOSAL: Where do you go when you are running out of available land to build on?

Underground, according to the sub-committee of the Economic Strategies Committee that looked into raising land productivity.

It suggests that vast quantities of underground space can be carved out for new development once a national geology office is set up to conduct surveys, update geological maps, develop a subterranean land rights system and determine how underground areas can be priced.

Such an office could act as a repository for all information on underground Singapore, and provide expert advice to the public and private sectors.

It could reduce the uncertainty involved for developers looking to build underground. And, by providing better information, developments above and below ground could be synchronised.

The state could supplement its ‘land bank’ via the creation of such spaces alongside new underground infrastructure projects such as MRT stations. This will help create new spaces to locate emerging industries.

In true Singapore fashion, the vision is accompanied by an ‘underground masterplan’, somewhat like what the Government draws up regularly to determine the uses and density permitted for specific plots of land (above ground) over a 10- to 15-year period.

POSSIBILITIES: Granite and sedimentary rocks such as sandstone and limestone cover about two-thirds of Singapore, according to the Institution of Engineers Singapore (IES), and it is within these formations that developments can be constructed.

The upside is that technology for such work is established, although experts fear it will take some time before people are willing to accept the idea of living more than six feet underground.

But IES suggests that underground space could be used to house power stations, sports facilities, warehouses, wafer fabrication factories, laboratories, research centres and even incineration plants.

Moving such facilities underground would free up land for housing, parks and open spaces, thereby raising the quality of life.

Furthermore, the legal foundations for the development of subterranean land rights already exist, says Associate Professor Kelvin Low from the Singapore Management University’s School of Law. At present, the owner of a plot of land has the right to build both skywards and into the ground via the creation of basements. This existing framework can easily be adapted for underground developments.

In order to allow two projects on each plot of land, the Government could subdivide state-owned land so that the underground portion is treated separately from that above ground. In the same way, a private owner of land can apply for permission to subdivide his or her plot to allow for dual above- and below-ground construction.

PRECEDENTS: Singapore currently uses underground space to accommodate shopping malls, train networks, new highways, civil defence shelters, pedestrian links, and storage for ammunition and oil. Think CityLink underground mall, which links City Hall MRT station to Suntec City, and the 12km-long Kallang-Paya Lebar Expressway, of which 9km runs underground.

And subterrestrial success stories abound across the world.

The Canadian city of Montreal is well-known for its underground city called Reso. Inhabitants can live, work, eat, exercise and be entertained there without setting foot above ground, where temperatures can slip below 10 deg C for six months of the year.

More than 30km of underground tunnels and ground-level interior walkways link the offices, hotels, malls, movie theatres and museums which are part of this network.

The Japanese city of Osaka also has an integrated underground city centre and no fewer than six underground malls, all of which are connected by rail. The walkways, and office and department store basements form a labyrinth-like subterranean network, adorned with artificial rivers, sunken gardens and glass facades to direct natural light to the basement level.

PRACTICAL PROBLEMS: Despite technological advances, building underground is inherently difficult. Extensive geotechnical studies and mapping are required, plus feasibility studies to ensure projects are viable.

Cost is another big factor, as depending on soil conditions, such developments can end up costing up to three times more than comparable surface structures.

Property consultant Knight Frank’s managing director Danny Yeo feels cost considerations will restrict large underground developments to areas where land costs are high, like Orchard Road.

How to protect existing surface-level property could also prove to be another stumbling block.

According to SMU’s Prof Low, owners of properties next to underground sites are protected by law, given that subterranean developers are deemed liable for any damage to their buildings resulting from construction, even if it is not due to carelessness.

Such liability, he notes, is stricter than that found in some other common law countries like Canada and New Zealand, which require proof that the developer was negligent before he can be made liable.

While Singapore’s stricter regime safeguards the interests of those with terrestrial property, it could render subterranean development more expensive here if neighbouring buildings were shoddily built and hence more easily damaged, he notes.

Source : Straits Times – 6 Feb 2010

PAYING big money does not necessarily get you everything these days, at least when it comes to buying a private apartment.

New homes going for as much as $2,600 per square foot can offer designer furnishings and place you in a coveted district, but they may no longer come with large common spaces or even tennis courts traditionally associated with a private address.

In the core central region (CCR), home seekers would not find tennis courts in projects such as Marina Bay Suites, Sophia Residence and Illuminaire on Devonshire.

Further from town, buyers have paid as much as $1,345 psf at Alexis or $1,514 psf at Suites@Guillemard, where there is just a margin of space around the buildings, and swimming pools and gyms congregate on the rooftop. Tennis courts are also missing from the picture.

Nowadays, ‘you don’t really get developments with sprawling grounds, where there’s openness’, observes DTZ executive director Ong Choon Fah. ‘Those are actually more difficult to come by.’

Many projects cannot offer large landscaped grounds or a full range of facilities simply because their sites are not big enough. A tennis court alone measures 78 ft by 36 ft, taking up 2,808 sq ft. According to EL Development managing director Lim Yew Soon, a developer could try to tuck a court just nicely into a smallish site, but it could become a ‘disamenity’ to residents living too close to the noise.

In fact, there are buyers who do not expect to see tennis courts for smaller projects within or near town, he adds. ‘Even if they really see, they’ll be asking if it will be too near their units.’

EL Development has three projects in CCR which do not have tennis courts – Illuminaire on Devonshire, Parc Centennial and Rhapsody on Mount Elizabeth – but they are sold out.

Many projects are still able to command high prices because of their location. This is especially so if owners intend to rent the apartments out.

The absence of a tennis court, for instance, may mean a longer search for a tenant but consultants say rents are unlikely to be dented much. ‘That’s about property investment. Location is everything,’ says Savills residential director Phylicia Ang.

GuocoLand is banking on Sophia Residence’s location near Dhoby Ghaut MRT station to attract buyers. The project does not have a tennis court, but home seekers’ ‘main buying criterion was to be in the city, to have easy MRT access to all parts of Singapore and also a property which offered attractive rental yield’, it told BT. The development will be where Sophia Court used to be and the latter also did not have a tennis court.

Beyond site constraints, high land prices may be prompting developers to cut back on common spaces and certain facilities.

‘With land costs so high, most developers want to maximise the saleable area,’ says ERA Asia Pacific associate director Eugene Lim.

But that’s not to say that all developers have free rein on the site design. The Urban Redevelopment Authority (URA) has rules on site coverage, which indicate how much space buildings can occupy.

For developments classified as flats/apartments and condominiums, site coverage cannot exceed 40 per cent. Mixed-use developments are the ones which are not subject to this rule.

Still, developers are careful to keep features which most residents cannot seem to do without, namely swimming pools and gyms. Faced with a smaller site, ‘the priority is given to swimming pools’, says DP Architects director Tai Lee Siang. But ‘where possible, it is likely that developers will still want to incorporate tennis courts’.

As it becomes harder to find prime projects offering large ground spaces and complete facilities, existing developments with these features are likely to stand out. ‘One of the reasons why Ardmore Park is so popular is because it has a beautiful landscaped garden, and the grounds are sprawling. You don’t get many of these, these days,’ says DTZ’s Mrs Ong.

Source : Business Times – 6 Feb 2010