Five lawyers sued over sale of house

12 Nov, 2009

A PRIVATE investigator is suing five lawyers for professional negligence over the sale of his house in 2002.

Mr Simon Suppiah Sunmugam, 62, alleged that they had mistakenly paid property agency ERA $28,000 as a commission.

He said in his affidavit that he found the buyer of the property. The agency, therefore, did not deserve any payment.

The lawyers he is suing are Ms Amarjit Kour, Mr Gregory Tang Wee Thiang, Ms Belinda Ang Choo Poh and Mr Peter Cuthbert Low of the now-defunct firm Peter Low Tang & Belinda Ang. The firm represented his ex-wife Nee Shyam Huey in their May 1996 divorce.

The fifth lawyer he is suing is Mr Andrew John Hanam, who acted for him in the divorce.

The defence of the four lawyers is that they were hired by Madam Nee and not by Mr Suppiah, and thus owed him no professional obligation.

Mr Hanam is denying responsibility on the grounds that the sale of the Suppiahs’ matrimonial home after the divorce was arranged by the other lawyers, so Mr Suppiah should refer to them to recover his losses.

Court documents showed that when Mr Suppiah defaulted in the divorce settlement, Madam Nee obtained a court order to sell the matrimonial home in Punggol.

She found a buyer for $1.6 million but Mr Suppiah objected because the price was too low. He then found a neighbour who was willing to pay $1.75 million.

He was expecting his share of the sales proceeds to reach $240,000, but received only $212,000 in July 2002.

When he discovered that a commission of $28,000 had been paid to the housing agent, he instructed Mr Hanam to write to the other lawyers to withhold payment. But it was too late.

At the opening of the civil suit yesterday, Mr Suppiah took the stand to tell his lawyer Alain A. Johns that despite the sale-and-purchase agreement, which did not authorise payment of the housing agent’s commission, the five lawyers failed to protect his interest.

The hearing will continue next year.

High luxury-home prices are good

November 12, 2009
COMMENTARY

Policymakers can focus on alleviating life’s anxieties such as providing low-cost quality education, healthcare coverage
By LESLIE YEE

I WORK in the real estate sector in Hong Kong but do not cover the residential property market. Nevertheless, like many residents of the Special Administrative Region, I have been fascinated by recent market developments. Over the past few months, prices have been rising, China buyers have been increasingly active, developers have been launching units and analysts have been talking about the lack of supply. Debate raged over the sustainability of price rises with the argument centring on lingering economic weakness versus abundant liquidity coupled with early signs of economic improvement.

News then broke in late October of Henderson Land’s sale of a duplex at 39 Conduit Road for HK$439 million (S$78.54 million) or a world record HK$71,280 per square foot. What has since ensued is heated discussion over whether dreams of home ownership for the middle class in Hong Kong have been shattered in part due to rich China buyers driving up prices. Calls are being made for the government to tame the raging animal spirits in the Hong Kong residential market.

The themes playing out in the Hong Kong market are to some extent applicable to Singapore, although the Singapore private residential market rally this time round has been mass-market- led while that in Hong Kong is driven by the high end. Still, with Singapore’s imminent opening of the integrated resorts, there could be a new spring in step for high-end properties.

In Hong Kong, questions being discussed include: Are foreigners pricing out locals? Do sky high prices for luxury units matter? What can and should government do to control property prices? What help if any should government render middle-class locals in owning their homes? Are the controversies in the property market a reflection of economic growth in recent years benefiting high-income earners disproportionately while the rest lag behind?

Invariably, there will be some degree of envy when wealthy foreigners come to any city and lord it over the locals. Such a scenario emerges in many a successful city, with rich Russians and Arabs in London, rich China nationals in Hong Kong and rich Indonesians in Singapore. However, should one follow the head rather than the heart, it is not just the Hong Kong property tycoons who ought to celebrate the sale of a luxury unit for HK$71,280 psf but everyone.

Wealthy people have a choice of where to invest their money. Hong Kong people should be proud that there are a fair number of rich people confident enough in Hong Kong’s prospects to pay princely sums for property in the territory. Indeed, having millions poured into residential property helps generate real-estate- related jobs plus spending by the dwellers of luxury properties. Real estate investment may not generate the same amount of economic spin-offs as investment into manufacturing but they still bring economic benefits.

Singapore and Hong Kong share many similarities, key of which is that both cities, in my view, have a bright future catering to a rapidly growing Asia as hubs of finance, trade, transport, tourism, and various other services. Economic success of both cities does depend on keeping an open door to foreigners and this includes being broadly welcoming to participation by foreigners in the property market. Hong Kong has an important strategic fight on its hands of being competitively positioned as Shanghai and Beijing make strides up the league of global cities. The people of Hong Kong should be more concerned with the city’s ability to thrive in an ever-changing global landscape than the state of the property market. Of course, should Hong Kong continue to grow as a key business hub, expect more reports of developers selling luxury units for mind-boggling sums.

Shelter is a basic need of man and owning a home is a key purchase decision for many people. Defining the type of housing that the middle class should be able to afford is, however, tricky. I believe that all policymakers can largely do is to ensure that there is adequate land supply such that there is a range of property types at different price points available. Just as with any consumer product, we should rely on developers to offer choice to meet a variety of needs.

It is not surprising that developments in the residential property market generate strong emotions. Very high prices at luxury projects are not mere aberrations and high prices at the high end can lead the rest of the market up. Nonetheless, the high end typically forms a small part of the wider market and purchasers at the high end tend to be financially strong, Thus, it would be wrong to see high luxury-unit prices as indicative of a property bubble, which is what policymakers rightly fret about. Instead, what policymakers could do is to be more effective in winning hearts and minds – that high prices at the high end are generally a good thing.

More critically, what policymakers in successful Asian cities can focus on is to put any discussion of residential real estate in a wider context. While anxieties of the middle class with regards to home ownership may be difficult to assuage, the state can focus on doing more in other areas to alleviate life’s anxieties such as providing low-cost quality education, healthcare coverage and help with retirement savings. Let the pursuit of making a city a great place to work, live and play go together with ensuring that a range of needs of local residents are well taken care of. While not everyone can live in a prime neighbourhood, everyone can perhaps get reasonably good health care and education.

The writer is a Hong Kong-based real estate executive with extensive experience in the Singapore property market

Stronger action seen to deflate property bubbles

November 12, 2009

(MUMBAI/HONG KONG) Asia’s policymakers are sticking with surgical steps to contain asset price inflation, but may soon have to turn to much more aggressive action if property bubbles keep inflating.

Authorities in Hong Kong, India, Singapore, South Korea and Taiwan in the last several weeks have either increased restrictions on property loans or issued warnings that tighter controls may be needed to contain a boom driven by a mixture of rock-bottom financing rates, rising wealth, government incentives and outright speculation.

Australia’s central bank is trying to get ahead of the game. Hot housing markets may push the Reserve Bank of Australia to raise its policy rate in December for the third consecutive month, the first time that has happened in about 20 years.

‘At the moment it’s a fairly softly, softly approach to things but I guess if this continues and liquidity continues to be ample and continues to push up asset markets, and that’s certainly our view, then the moves will become presumably more and more aggressive,’ said Robert Prior-Wandesforde, senior Asia economist with HSBC in Singapore.

The more aggressive tactics could include increasing taxes on purchases of second homes, capping mortgage limits or even threats of higher interest rates.

The latter apparently worked for the Bank of Korea to cool its property boom. Like Hong Kong, India and China, South Korean authorities tinkered with mortgage rules, by raising the minimum standard for mortgage debt to income and cutting the maximum ratio of mortgage loans-to-property value.

Yet the central bank also used overt warnings – early on – that higher interest rates could be used to cap property prices. The BOK has not yet raised rates, but its all-in approach has resulted in mortgage lending slowing for a third straight month in October.

Asset price inflation will become increasingly a sore point for China’s policymakers.

Bank of America-Merrill Lynch economists believe that China is going to take a cautious approach by maintaining stimulative policies for first-time home buyers, but tighten up rules for those purchasing a second home by increasing down payment requirements and adding to charges.

With real estate investment making up 10 per cent of GDP, the government will not want to deflate overall prices too quickly. The stakes, though, are high.

‘There is a big chance this asset price inflation will become a bubble,’ Mingchun Sun, chief China economist and head of China equity research with Nomura, said. ‘If the government can control the amount of leverage in the purchase of assets, then the damage can be controlled at least.’

One irony of the last year is that the global credit crisis has resulted in a Chinese credit boom, as the government encouraged lending to support the economy. Banks in China are expected to lend 10 trillion yuan (S$2 trillion) this year.

Mr Sun expects mainland banks to lend another 10 trillion in both 2010 and 2011, which would double loans outstanding. And since 70 per cent of credit growth usually ends up in household financial assets, how these households spend and invest this wealth will be key for asset price inflation for years to come.

He is hopeful that the government can control bubble pressures by allowing development on more state-owned property. His top stock picks include China Resources Land and KWG Property Holding Ltd because they own big shares of land in the west, where many Beijing-led projects have yet to start.

A Reuters poll showed analysts expect monetary tightening to cool some of Asia’s property markets next year. From now until the end of 2010, analysts expect residential property prices in Hong Kong to rise 8.8 per cent, and by only 2.5 per cent by the end of 2011.

Similarly in Singapore, house prices are seen up 7.5 per cent between now and the end of next year and then flat by the end of 2011. Interest rates in Hong Kong and Singapore generally track US funding costs, which are expected to begin rising in the latter part of next year.

The last time that the average policy rate in emerging Asia hit the end of an easing cycle was the second quarter 2004.

Five years later and housing prices are up single digits compared with the prior year.

Legg Mason fund managers have gone from bullish to wary on Hong Kong property stocks in the last three months.

With luxury apartment prices rocketing 40 per cent this year in Hong Kong, the US fund is neutral on the industry but remains bullish on mainland Chinese real estate.

Industrial site at Pioneer Road launched for sale by public tender

By Irene Chan, Channel NewsAsia 11 November 2009

SINGAPORE: The government has launched an industrial site at Pioneer Road for sale by public tender.

It was made available for sale through the Reserve List system after a developer committed to bid at least S$8.2 million for the site.

The 30-year leasehold land parcel has a site area of about 1.9 hectares and a maximum gross plot ratio of two hectares.

The tender will close on December 9.

Singapore’s Urban and Redevelopment Authority (URA) said the successful bidder will be based on the tendered land price only.

Any tender below the minimum bid price of S$8.2 million will not be accepted.

HDB suffers S$2b deficit

By Joanne Chan, Channel NewsAsia 2 November 2009

SINGAPORE: The Housing and Development Board (HDB) has reported a S$2 billion deficit before government grants in its latest annual report. The figure is more than double the loss reported in the previous financial year.

HDB said the huge deficit for the financial year ending March was due mainly to more flats being sold. These flats are highly subsidised by the government.

Higher construction costs also led to the large deficit. Other reasons that contributed to HDB’s loss included upgrading works for lifts and rental flats.

Between April last year and March this year, HDB pushed out 8,000 flats under its Build-To-Order Scheme. That was 2,000 more than what it supplied the year before.

At a media briefing on its latest annual report, HDB also gave an update on the Lease Buyback Scheme which allows low-income elderly Singaporeans to get a portion of cash upfront while HDB buys back the tail-end of the lease of their flat.

HDB has received more than 400 applications since the scheme was launched earlier this year. Some 25,000 households are eligible for the scheme, but the elderly have other options to monetise their flats.

HDB’s CEO, Tay Kim Poh, said: “Some of them will sublet their entire flat, and the rental for even a three-room flat is very good nowadays. They can easily get S$1,500 per month from the rental and they (then) move in to stay with their children.”

Despite the global downturn, HDB said the mortgage arrears rate has dropped 0.4 percentage point to 7.5 per cent.

Market watchers said this may be due to the high resale prices of HDB flats.

Eugene Lim, associate director of ERA Asia Pacific, said: “There was an upswing in the market since the beginning of this year. And what happens is that those households in arrears probably made use of this opportunity to sell their flat and downgrade to a flat that they can afford.”

Moving forward, HDB said it will focus on improving community relations. A new department has been set up within the housing board to look at strengthening social cohesion and integrating newcomers.

 

 

Drop in HDB home loan arrears

3 Nov, 2009

Defaults stemmed by slew of measures, says HDB in annual report
By Jessica Cheam

DESPITE the recession, the number of HDB home loan arrears fell from 33,670 in September last year to 30,770 during the same month this year.

The drop follows the Housing Board’s introduction of a raft of measures at the outset of the financial crisis to aid owners at risk of defaulting on their home loans.

The measures, announced in February, included a mix of short- and long-term initiatives such as deferring payments, counselling and – as a last resort – compulsory acquisition.

The HDB also introduced the new concept of ‘interim housing’, intended for those who may need to urgently downgrade, but have bought a new flat that has yet to be completed.

Departing from its usual practice, the HDB started extending second concessionary loans to downgraders on a case-by-case basis.

Taken together, the measures led to a decline in the default rate from 7.9 per cent of 426,270 loans in September last year, to 7.5 per cent of 409,470 loans for the same month this year.

The HDB’s annual report, released yesterday, also showed that the number of applications for rental flats fell 24 per cent – from 4,550 in February to 3,465 by the end of September.

This shaved eight months off waiting times as of end-September compared with a year ago, bringing the wait down to 13 months for those in need of heavily subsidised rental flats.

HDB moved in February to tighten the eligibility criteria for such flats, meant for low-income households, after burgeoning queues became a cause for concern. The stiffer criteria included assessing not just a tenant’s income, but also assets like savings and whether family members owned private property.

At a press briefing last Friday, HDB chief executive Tay Kim Poh said the past year had been one ‘of uncertainty. ..as the fallout of the financial crisis loomed large’.

He added that HDB’s efforts centred on helping groups hit by the downturn. This included boosting the additional housing grant scheme by raising the income ceiling from $4,000 to $5,000 and the maximum grant from $30,000 to $40,000.

Since its launch in March 2006, the HDB has spent $286 million on the scheme, with 18,000 households benefiting.

The building of smaller flats, which slowed in recent years due to falling demand, was ramped up during the year with 1,074 two- and three-roomers launched for sale under the build-to-order (BTO) scheme in order to help households downgrade.

Mr Teo Ser Luck, MP for Pasir Ris-Punggol GRC, said the new measures have helped: ‘On the ground, I am seeing fewer cases of residents appealing for rental flats.’

And to help elderly folk monetise their HDB flats, the board launched the Lease Buyback Scheme in March, which pays out a monthly income.

It attracted 425 applications by the end of September, compared with 137 at the end of March. The HDB has approved about 100 so far.

The number of new flats booked reflected the uncertain economic climate, falling to 9,870 for the year ended March 31 from 12,580 the previous year.

But the economy has since brightened and HDB is seeing a pick-up in new flat demand. It recently ramped up its supply of BTO flats and will launch another 4,000 new flats before the end of the year, bringing the total supply of flats to 13,500 units for this year.

*** Figures at a glance

• Dip in mortgage arrears

There were 33,670 cases in arrears, or 7.9 per cent out of 426,270 outstanding home loans, in September last year, but only 30,770 cases in arrears, or 7.5 per cent of 409,470 loans, this September.

• Lease Buyback Scheme

There were 425 applications by the end of September, compared to 137 at the end of March, and the HDB has approved about 100 so far.

• Additional housing grant scheme

The income ceiling was raised from $4,000 to $5,000, and the maximum grant was increased from $30,000 to $40,000 for the buying of both new and resale flats.

Since the scheme was launched in March 2006, more than 18,000 households have benefited and about $286 million has been disbursed as of this September.

• More smaller flats

For the year ended March 31, 1,074 units of two- and three-room flats were launched under the build-to-order scheme.

• More rental flats

The rental stock will increase from 42,000 to 50,000 units by 2012. So far, 1,567 converted and new rental flats have been completed.

• Tightened eligibility rules for rental flats

The number of applicants fell from 4,550 in February to 3,465. The waiting time fell from 21 months a year ago to 13 months as of September.

• Lift Upgrading Programme

Good progress has been made, with more than 80 per cent of 5,300 eligible blocks selected.

• Home Improvement Programme (HIP), Neighbourhood Renewal Programme (NRP)

As of September, 14,000 flats have been offered HIP and 33,000 offered NRP. Both programmes received strong support level averaging 90 per cent.

 

 

Unsold HDB flats largely cleared: CEO

November 3, 2009

Remainder is reason for Sale of Balance Flats exercise, launched last month
By EMILYN YAP

(SINGAPORE) Facing steady demand for public housing, the Housing and Development Board (HDB) has almost cleared its stock of unsold flats. The agency also offered more units in the last financial year, incurring a larger deficit in the process.

‘We have largely cleared our unsold stock,’ said HDB chief executive Tay Kim Poh at a briefing on the board’s annual report for FY08/09 ended March. ‘We still have some balance units here and there . . . the number is a very small number.’

Based on past reports, HDB held about 1,500 completed units last year, and some 3,500 units in 2007.

According to Mr Tay, the few unsold flats left was a reason why HDB introduced the Sale of Balance Flats exercise last month. Under the scheme, the agency will offer flats from repurchases, previous build-to-order (BTO) exercises and selective en-bloc redevelopment schemes – once it has accumulated a sufficient number of them.

HDB launched 2,132 flats under this scheme and received 20,691 applications – almost 10 bids for every flat available.

HDB offered more flats in FY08/09, awarding 14,754 residential units – up 46 per cent from the previous year. This caused sale and development costs, together with the amount of CPF housing grants given out to rise. The deficit incurred by home ownership activities grew 54 per cent to $1.55 billion.

Upgrading activities also posted a higher deficit as more precincts took part in lift upgrading and interim upgrading plus programmes. The loss deepened 35 per cent to $696 million.

The upgrading of rental flats also widened the deficit for rental flat activities by 95 per cent to $150 million.

All in, net expenditure had increased 23 per cent year-on-year to $5.15 billion in FY08/09. HDB’s deficit almost doubled from the previous year, from $1.08 billion to $2.12 billion.

In the financial year, HDB launched 12 BTO projects comprising 8,057 units, and one balloting exercise for 992 surplus flats. There were also two design, build & sell scheme (DBSS) developments offering 1,058 units.

HDB has not decided on the supply of new BTO flats for 2010. ‘We will monitor the demand,’ Mr Tay said. He added that HDB also plans to release more DBSS sites.

HDB also provided more help to home buyers, owners and the needy as the economic downturn unfolded. For instance, it gave out the additional CPF housing grant to 6,076 households in the financial year – 69 per cent more than a year ago.

Since the grant was made available in March 2006, more than 18,000 households have received some $285.8 million as at September.

There are also specially trained counsellors to help home owners with their loans. The number of flat owners in arrears of three months or longer fell to 30,770 in September from 33,670 a year ago. This means that the mortgage arrears rate slipped from 7.9 per cent to 7.5 per cent.

The lease buyback scheme, launched in March to allow low-income elderly Singaporeans to draw a lifelong income from the value of their flats, saw 425 applications as at September, up from 137 six months ago.

HDB has identified a few challenges for the coming year. One is to develop programmes that will help new residents integrate into the public housing community and boost social cohesion.

Another is to upgrade and rejuvenate older housing estates – more flats will turn 40 to 50 years old in the next 10 years.

HDB will be celebrating its 50th anniversary next year. To commemorate 50 years of public housing, it will be organising an international housing conference on housing development and urban solutions in January.

 

 

Warehousing, too, may go underground

November 3, 2009

Study to examine feasibility of centre at Tanjong Kling
By RONNIE LIM

(SINGAPORE) The push for underground is gathering momentum.

A feasibility study will be carried out into an underground warehousing, logistics and data centre at Tanjong Kling in Jurong. This comes soon after the government disclosed plans to build an underground science city (USC) at Kent Ridge.

‘Both projects could be undertaken concurrently if the studies prove feasible,’ a Jurong Town Corporation (JTC) spokeswoman said yesterday.

On Friday, the government called for a consultant to carry out ‘geological investigation and ground characterisation’ studies at Tanjong Kling. This is expected to take up to five months.

The move comes after a July tender was closed for a consultant to carry out feasibility studies into the Kent Ridge project. JTC is still evaluating the tender bids.

The appointed USC consultant – working to a 14-month deadline – will assess the maximum-size cavern complex that can be built there, as well as its impact on the environment and working population at Kent Ridge. It will also have to provide ballpark cost estimates for the project.

The studies on the two underground projects follow the recent start of construction work on the $1 billion first phase of the Jurong Rock Cavern (JRC) to store oil and petrochemicals on Jurong Island.

The move towards underground facilities comes as industrial land here is fast running out.

On Jurong Island proper, for instance, 75 per cent of the island’s 3,000ha has already been taken up or reserved by petrochemical investors.

‘The latest Tanjong Kling project would free up 45ha of land for other uses,’ the JTC spokeswoman said.

The other advantages of going underground for a warehousing, logistics and data centre are that ‘it would be shielded from heat and temperature humidity, have low background radiation and less disturbance from vibration’.

The Tanjong Kling area was chosen as a potential site after earlier studies of geological conditions, the JTC spokeswoman said. It could provide cavern space of more than 1.1 million square metres.

The site comprises Tanjong Kling and Jurong Hill and is bounded by four roads – Jalan Ahmad Ibrahim, Jurong Pier Road, Jalan Buroh and Pioneer Road.

The USC project at Kent Ridge spans 20ha below science parks 1,2 and 3 and Kent Ridge Park.

The area is near one-north, the National University of Singapore and National University Hospital, where research and development activities are pursued.

The JRC, USC and Tanjong Kling projects are part of a wide-ranging, 10-use underground rock cavern feasibility study called by the government in May last year.

The other possible uses are for incineration plants, water reclamation plants and wafer fabs.

 

FCT to buy YewTee Point and Northpoint 2

November 2, 2009

Buying the malls at this time will be yield-accretive for the trust, says CEO
By UMA SHANKARI

FRASERS Centrepoint Trust (FCT) is now ready to inject another two retail malls into its portfolio, chief executive Christopher Tang told BT recently.

While Mr Tang did not say when exactly the two malls – YewTee Point and Northpoint 2 – are likely to be bought over from parent company Frasers Centrepoint Ltd, the trust and the malls are all ‘ready’, he said.

Both malls are now stable income-producing properties.

YewTee Point, located next to Yew Tee MRT Station, has seen almost a million shoppers since it soft opened in March this year. The mall, which has a net lettable area of 73,000 square feet, has achieved an occupancy rate of 98 per cent.

Northpoint 2 at Yishun – an extension of Northpoint, which is already part of FCT’s portfolio – is also now seeing good occupancy and footfall, Mr Tang said.

Buying the malls at this time will be yield-accretive for the trust, he said. Previously, as FCT was trading at higher yields (due to a lower share price), buying the properties would not have been yield-accretive.

‘FCT is now trading at 5 per cent above net asset value and FY2010 dividend per unit (DPU) yield of 6.4 per cent, which could mean that acquisition of Northpoint 2 and YewTee Point from its sponsor (about $300 million) could be accretive,’ wrote UBS Investment Research analysts Regina Lim and Michael Lim in an Oct 27 note.

Analysts have also said that FCT can be expected to raise equity for acquisitions soon. The UBS analysts, for example, expect FCT to raise around $130-$170 million in the next four months for acquisitions.

Said CIMB analyst Janice Ding: ‘We believe FCT will use equity and debt to fund its acquisition of Northpoint 2 and Yew Tee Point in a bid to increase its stock liquidity. We have assumed 25 per cent debt and 75 per cent equity for the acquisition. ‘

The planned injection of the two pipeline assets is also expected to expand FCT’s asset base significantly. UBS estimates that the exercise could lift portfolio size by 27 per cent to around $1.4 billion.

YewTee Point was officially opened last Saturday. With the mall, Frasers Centrepoint unveiled its new ‘neighbourhood’ mall concept.

A neighbourhood mall, Mr Tang explained, is more intimately-sized than a suburban mall and will serve the needs of its immediate community: ‘For instance, residents can enjoy early morning or late-night grocery-shopping at anchor tenant NTUC FairPrice supermarket, which opens its doors at 7am and closes at 11pm.’

Some F&B tenants will also be open until the early hours of the morning, he said.

 

Landlords can stop ranting about rents

1 Nov, 2009

Rental decline easing and rates will stabilise or rise next year, say analysts
By Joyce Teo

Property investors worried about collecting less and less rental income may soon have cause to cheer, as property consultants expect rents to remain steady or even start rising from next year, albeit slightly and slowly.

The worst seems to be over, though the new condo completions coming up will keep rents from rising quickly or significantly, they say.

In the first nine months of the year, the Urban Redevelopment Authority’s rental index fell by 15.2 per cent, reversing the 2 per cent positive growth last year. However, the pace of decline has slowed. The rental index saw a milder correction of 2.2 per cent in the third quarter, compared with declines of 8.5 per cent and 5.2 per cent in the first quarter and second quarter, respectively.

Property consultants say private home rents are stabilising, and that the high-end segment has stabilised.

Said Cushman & Wakefield managing director Donald Han: ‘High-end private home rents have bottomed and should be on the way up, while the mass and mid-tier rental markets are in the process of bottoming.’

Already, rents of some good class bungalows have risen by about 5 per cent in the past three to four months, he disclosed.

The positive sentiment would eventually seep into the market for high-end apartments, he said. ‘Some companies are starting to look at expansion again, so that’s good news.’

It will mean an influx of expatriates.

‘Companies have stopped cutting back like they did last year,’ said Ms Jacqueline Wong, who heads Jones Lang LaSalle’s residential business.

‘The Singapore story is still good, and the two integrated resorts will soon be completed.’

Prime rents – which are still about 15 per cent to 20 per cent below the 2007 peak – have already stabilised. They are likely to remain steady going ahead, though a lot depends on how many new units come on the leasing market, she said.

New condos coming up in highly prized prime locations include Tate Residences in Claymore Road and Ardmore II in Ardmore Park. Some luxury condos may thus see some price pressure.

In determining the rent a development can command, its location, the layout of its units and its facilities are very important, said Savills’ director of residential leasing, Mr Patrick Lai.

For instance, Ardmore Park apartments have regular, practical layouts and no odd-shaped rooms. The condominium itself has large grounds, which are very popular with families. Rents there have achieved near-peak levels of $6 per sq ft (psf).

There is also a growing leasing interest in newly completed homes in Sentosa Cove, Mr Lai added.

Still, rentals in newly built condos may start low if there are many competing units. Some owners would rather accept a lower rent than keep their units vacant for long.

Said Mr Lai: ‘It all boils down to demand and supply. When new projects are completed, there will naturally be a lot of competition. So rents are flexible.’

In general, he said, the downward trend in rents should continue to ease and rents may even experience a moderate pick-up next year, barring any adverse economic developments.

Any pick-up would more likely be seen in high-end apartments.

Prime rents slipped in the third quarter to $4.67 psf, compared with $6.09 psf at the previous peak in the first quarter of last year.