Private home sales still going strong

The private residential market continued to see robust sales last week with V On Shenton (pictured) selling 50 units, bringing total sales to 140.  

Developed by United Industrial Corporation (UIC), the 54-storey tower was launched on 20 July with 190 out of its 510 units released. Apartments at the 99-year leasehold project are being sold at an average price of S$2,200 psf.  

Singaporeans are believed to have dominated sales with other buyers coming from China, Indonesia and India, according to The Business Times.

At the same time, Parc Centros by Wee Hur Holdings reportedly attracted another 100 buyers last week taking total sales to 480 units thus far.  

Going at an average price of S$950 psf, the 99-year leasehold project has attracted mainly Singaporean buyers. 

According to analysts, brisk sales at Parc Centros could be attributed to the popularity of Punggol and proximity to the MRT station and future Waterway Point mall. 

In addition, its average pricing is seen as more attractive than Watertown condo which was unveiled in January at a median price of S$1,169 psf. 

Meanwhile, Koh Brothers’ Parc Olympia at Flora Drive reportedly sold some 20-plus units last week boosting sales to over 200 homes. The 99-year leasehold condo was launched on 12 July and released 358 of the total 486 units.  

Moreover, a freehold project called The Line@Tanjong Rhu is said to have sold around 15 units last week. Developed by Lakeview Investments, homes at the 107-unit development are being sold at an average price of S$2,100 psf.

Singapore property: Is the glass half empty or half full?

About two weeks ago, property analysts at Credit Suisse released their findings of a survey it conducted to obtain a clearer picture of buyer behaviour given the strong sales at private residential project launches this year.

It said its sample of 300 households had a profile that matched the Singapore population “quite accurately”, with 80 per cent living in public housing and with close to 9 in 10 owning a home.

It found that cash was ranked by 34 per cent of households as their top investment vehicle, followed by residential property at 27 per cent, and stocks at 23 per cent.

Only 21 per cent of the 300 households polled said they would consider buying a property within the next 12 months while 40 per cent did not intend to buy any time soon.

Respondents had high aspirations to upgrade, with 57 per cent preferring private homes to public housing.

New rather than resale is favoured as well, with 70 per cent preferring to buy from developers.

As I read the report, I am reminded of the common expression: Is the glass half empty or half full? Are the findings of the survey cause for pessimism (half empty) or optimism (half full)?

The Credit Suisse analysts chose to read the findings negatively, saying the sentiment expressed suggested transaction volumes would moderate after the strong showing in the early part of the year.

However, the same findings can be seen in a more positive light.

The last I checked from official sources, the number of resident households in Singapore totalled 1,146,000 last year.

Assuming the survey is representative of the population, 21 per cent, or 240,660 households, would consider buying a property within the next 12 months. Of this total, 57 per cent, or 137,176 households, prefer to buy private. With 70 per cent preferring to buy from developers, this figure comes to 96,023.

How many years’ worth of new home sales does this represent? Assuming that about 15,000 new homes are sold per annum, this represents more than six years’ worth of sales. Does this suggest that new home sales would slow down any time soon?

The survey also showed that affordability was not a real constraint. Affordability and liquidity remain strong. Household balance sheets remain strong – 47 per cent have no mortgage while another 46 per cent have only one mortgage.

Some 92 per cent have either no mortgage or have less than 30 per cent of household income going to mortgage payments. And 30 per cent have over S$100,000 in cash, which could easily form the downpayment towards buying a property.

Still on mortgages, the Monetary Authority of Singapore said on Wednesday it would be closely monitoring a new 50-year mortgage product – shortly after United Overseas Bank introduced a home loan that spans half a century, probably the longest tenor available here.

With respect to liquidity, it was reported on Tuesday in the United States that the Federal Reserve was leaning closer to further rounds of stimulus unless the nation’s economy showed signs of improvement soon, including in job growth.

Fed Chairman Ben Bernanke painted a bleak picture of the world’s largest economy, saying growth continued to disappoint even as it kept the US from slipping back into recession. It is looking likely that the US economy would enter into its own “lost decade” like the one Japan had experienced.

A third round of asset purchases by the Fed called “quantitative easing” – often called QE3 – would further drive down long-term interest rates.

What does this mean for interest rates in Singapore? Yes, it appears that a sharp interest rate hike is not likely to happen any time soon and the robust property buying looks set to continue.

Private residential prices increased by 0.4% in 2Q 2012

The Urban Redevelopment Authority (URA) released today the real estate statistics for 2nd Quarter 2012.

Prices of private residential properties increased by 0.4% in 2nd Quarter 2012, compared to the 0.1% decrease in the previous quarter.

Prices of non-landed properties in Core Central Region (CCR) and Rest of Central Region (RCR) increased by 0.6% and 0.4% respectively in 2nd Quarter 2012, compared to the decrease of 0.6% for both market segments in the previous quarter. For Outside Central Region (OCR), prices increased at a slower pace of 0.5% in 2nd Quarter 2012, compared to the increase of 1.1% in the previous quarter.

Rentals of private residential properties increased by 0.3% in 2nd Quarter 2012, the same rate of increase as in the previous quarter.

For new launches, a total of 6,115 uncompleted private residential units were launched for sale by developers in 2nd Quarter 2012, compared with 6,903 units in 1st Quarter 2012.

5,402 private residential units (both completed and uncompleted) were sold by developers in 2nd Quarter 2012, compared with 6,526 units in 1st Quarter 2012. Most of the units, close to 70%, sold by developers were from OCR in 2nd Quarter 2012.

Take-up of shoe-box units (i.e. smaller than 50 sqm) accounted for 19% (or 1,038 units) of new sales in the quarter, less than the 27% in the previous quarter. Lower-priced units less than $750,000 accounted for 27% (or 1,435 units) of new sales in 2nd Quarter 2012, lower than the 42% (or 2,766 units) seen last quarter (see Annex C-3).

The volume of resale transactions increased significantly from 2,206 units in 1st Quarter 2012 to 3,487 units in 2nd Quarter 2012. Resale transactions accounted for 37% of all sales in 2nd Quarter 2012, higher than the 24% in the previous quarter.

Sub-sales accounted for 6% of all sale transactions in 2nd Quarter 2012, higher than the 5% recorded in 1st Quarter 2012.

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PRs in the HDB market: Boon or bane?

THE Housing Board's recent move to make it harder for permanent residents (PRs) to sublet their flats was a milestone of sorts.

For the first time, PRs - who own some 5 per cent of HDB flats - were singled out for some restrictions in the resale HDB housing market.

Of course, the HDB resale market has never been a purely level playing field for non-citizens. For one, PRs do not get the concessionary loans and grants that Singaporeans do. And when it comes to estate upgrading projects, they have to pay the full cost, unlike citizens.

PRs have also been disproportionately affected by some measures to cool the public housing market over the last few years.

Take the sweeping policy in 2010 that anyone wanting to buy an HDB flat would have to get rid of their private property, including any held overseas, within six months of their flat purchase.

PRs obviously bore the brunt of this, since many have property in their home countries. Still, it was a blanket rule affecting all HDB owners - citizens and PRs - equally. The idea was to discourage people from viewing public housing as an investment.

PRs were first allowed to buy HDB resale flats in 1989. The rationale then was to liberalise that segment of the market and enable flat-owners to realise the full value of their assets. The change also aimed to encourage more PRs to commit to Singapore by making it easier for them to own a home here.

As a group, the PR flat-owners have not been explicitly targeted with a circumscribed set of rights - until now.

The new subletting rules announced earlier this month hit only PRs. They can now rent out their flats for a maximum of five years, and yearly approval is required within this period.

Before the change, both PRs and citizens could apply to sub-let their flats every three years, with no cap on the number of years they can rent out their flats.

For citizens and PRs, sub-letting can only be done after the buyers have lived in the flat for a minimum occupation period, ranging from three to five years. This remains unchanged.

While the new rules for PRs were announced without fanfare - a simple press release appeared on HDB's website in the morning, without any accompanying comment from any of the Ministry of National Development's blog-happy office-bearers - the move is a significant one.

Instead of treating all HDB resale flat owners the same, it tilts the scale considerably against a non-citizen. PRs' ability to monetise their housing asset through rental income is now curtailed by sole virtue of the fact that they are not citizens.

Many Singaporeans would say that is exactly the way things should be, and that the move was overdue. Citizenship comes with privileges, and the ability of PRs to make money from public housing flats has been a simmering, toxic one for many years now.

The numbers are small: only 2,142 flats are currently being rented out by PRs, less than 5 per cent of the PR-owned flats. But it has been a perennial source of resentment for some Singaporeans, say politicians.

After all, the social function of HDB flats - to affordably house a population - is still seen as paramount. As for the secondary benefit of profiting from public housing, one prevailing view is that this privilege should be reserved for citizens.

But there is an irony in this line of reasoning: Singaporean flat- owners after all have benefited from the surge in demand from PRs who, as of 2010, formed one in five buyers.

While the Government has valiantly tried to dispel the notion with facts and figures, the perception that PRs pay more for flats and can fork out bigger cash premiums still persists.

Many a property agent will tell you that the 'PR effect' has helped push prices upwards, inflating all HDB assets - 95 per cent of which are owned by citizens.

On the flipside: tales of PRs getting rich through rental income while they enjoy the lower cost of living in their home countries have proven equally insidious.

With its latest move, HDB is attempting to stem such scenarios, without affecting the positive role that PRs play in the resale market - a difficult balancing act to pull off.

In the aftermath of the subletting changes, for example, some online commenters immediately asked why the Government did not just go the whole hog and prevent PRs from sub-letting HDB flats altogether.

If the principle is that PRs should not be buying a public housing flat for investment income, then there is no reason they should be allowed to rent it out at all.

Should overseas work secondments or other such circumstances crop up requiring PRs to rent out their flat, they can be dealt with through case-by-case special dispensations from HDB, went the argument.

But going down this route risks driving many PRs away from the resale market altogether, since a purchase decision often weighs the possible rental income from a property. And if the PR group of buyers does shrink, so will the market disinflate.

Some Singaporeans argue this is not an undesirable state of affairs, though others who stand to profit from the rise in flat prices will probably disagree.

The latest move by the Housing Board has opened the door to such uncomfortable debate.

At the heart of the issue is the question of whether HDB flats should remain primarily housing units for shelter or whether they should be aggressively transformed into assets of value for Singaporean households.

If the former is paramount, the latest move is in the right direction. If the latter, any measure that denies equal rights to PRs over their resale flats is imprudent, as it ultimately shrinks the pool of buyers.

Even if they own only a small percentage of total HDB housing stock, PR buyers produce a part of the churn without which the market would be more stagnant.

But if resale flats become too attractive to PRs, the market could over-heat and annoy citizens, especially those yet to own an HDB flat - a scenario that arguably has already played out.

Ultimately, it all boils down to the fundamental question of the purpose of HDB flats.

But whether they serve the social function of providing for citizens first or the economic goal of asset enhancement, the intention behind both roles is the same. It is to root Singaporeans to the country. But they involve different considerations and trade-offs. They also imply different views of what PRs are entitled to when they buy a piece of public housing.

For now, HDB has made the calculation that restrictions on PRs are called for, perhaps to placate citizen flat-owners.

And it is no doubt also banking on the fact that the latest change in rules is minor enough not to unsettle the HDB resale market, since few PR flat-owners will be affected. Any outcry from such a small number may also be muted and largely go unnoticed.

A tenuous balance has been struck on the issue of keeping the resale market open to PRs, while denying them equal rights over their property. Whether it will hold remains to be seen.

Pan Pacific eyes serviced units in Myanmar

Pan Pacific Hotel Group said serviced apartments is a unique growth segment in Myanmar.

The Singapore listed group had acquired a hotel in the former capital, Yangon, eleven years ago and branded it as part of its Park Royal hotels chain.

And now that Myanmar’s economy is opening up, the Group said its investment in the country is paying off.

Pan Pacific Hotel Group’s CEO, Patrick Imbardelli, said: “We’ve been approached like daily by investors, or would-be partners, to say you know the market, you’ve been there, we’d like to do something with you. Service suites have a unique, unique position in Myanmar. As ADB, as World Bank, as United Nations start sending in people, resources, they’ll need long term stays. So we’re also looking at opportunities in that segment of that market.”

The Group’s first quarter profit this year rose more than 60 per cent.

Two residential sites launched to yield 950 homes

The Urban Redevelopment Authority (URA) and Housing and Development Board (HDB) have jointly launched the public tender for two 99-year leasehold residential sites at Dairy Farm Road and Punggol Way/Punggol Walk (pictured).

Estimated to yield a total of 950 homes, the sites were made available under the confirmed list of the Government Land Sales (GLS) Programme for 2H2012.

The first site at Dairy Farm Road measures 17,545.8 sq m and is slated for the development ofcondominiums or flats. Aside from enjoying accessibility via the BKE and PIE, it is also near the upcoming Hillview MRT station on Downtown Line 2.

Png Poh Soon, Head of Research at Knight Frank Singapore, expects the site to attract four to six bidders, with the winning bid ranging from S$550 to S$590 psf ppr. This translates to a selling price of between S$1,150 and S$1,200 psf.

“However, we expect interest for this site to be moderate with up to six bidders, given the existing unsold inventory of about 1,070 units from the nearby developments in the Hillview and Chestnut Avenue areas,” said Png.

Meanwhile, the 56,243.4 sq m land parcel at Punggol Way/Punggol Walk could house around 560 executive condominiums (ECs). Sited near Punggol Promenade, the site is accessible via the TPE.

Png anticipates a total of eight to 10 bidders for the site, with the winning bid hovering at around S$310 and S$320 psf ppr. As for the selling price, it is expected to be around S$740 to S$760 psf.

With its ideal location, Png said that “there could be strong interest for this EC site”.

“Demand for EC units is expected to remain healthy as this market segment serves the sandwich class of home buyers,” he added.

The tenders will end on 4 and 11 September for the Punggol Way/Punggol Walk and Dairy Farm Road sites respectively. 

Fish House, Sentosa's most ecofriendly property

Private homeowners in Singapore are now exercising greater effort to integrate the latest environmentally-friendly features into their homes, according to an article first published in The New Paper.


For instance, a two-storey bungalow at Sentosa called The Fish House (pictured) has received praise for being an environmentally-friendly property. Owned by hedge fund manager Stephen Fisher, the Fish House received the Architectural Design Award from the Singapore Institute of Architects in 2010.

The panel of judges were impressed with the way the house blended open spaces with sea views, showing its adaptability to the country’s tropical climate.


Comprising two pavilions, the house is made of wood and glass and is connected by a bamboo walkway on the second floor. It is also surrounded by a sea-facing infinity pool.


One pavilion has a pool verandah on the first floor while the kitchen, living and dining areas can be found on the second level.


The other pavilion houses the master bedroom and two other bedrooms.


Fisher, who has lived in the house since April 2009 together with his wife and two children cited the eco-friendly features of their home such as the photovoltaic cells on the roof which harness solar energy, a roof garden for beauty and ventilation and abalone shell decorations.


Other features include extended eaves for more shade and an underground audio-visual room covered in 12.7cm-thick acrylic walls that offer underwater views of the swimming pool.

Tepid response at Jones Lang auction

A two-bedroom apartment at Euro-Asia Park in District 13 was the only property to be sold at yesterday’s monthly Jones Lang LaSalle property auction.

The 1,001 sq ft freehold property with vacant possession attracted a total of 21 bids before being sold for S$1.1 million.

Explaining why the unit attracted such interest, auctioneer Mok Sze Sze (pictured) told PropertyGuru: “This was mortgagee sale for a freehold property priced under S$1.5 million.” She added that it is fairly rare for properties like this to come under the hammer.

The only other lot of the five offered to attract bids was a shop unit at Sim Lim Square. It failed to sell despite bids of S$2.2 million against an original asking price of S$2.5 million.

Two units at The Scala, a condo project along Serangoon Avenue 3 which is expected to be completed in 2014, also came under the hammer but failed to attract any interest.

Mok explained that buyers were required to purchase multiple units when the development was launched in August 2010. Caveats lodged with the URA (Urban Redevelopment Authority) for sales of similar sized units on similar floors shows the owner was expecting to make around 10 percent gross profit should the units have reached their asking price.

Sophia Mansions sold en bloc for S$43.3m to Roxy-Pacific

Roxy-Pacific Holdings Limited will acquire the 19-unit Sophia Mansions (pictured) at Mount Sophia for S$43.3 million.

With a land area of 17,545 sq ft, the price for the 20-year-old freehold site works out to S$1,175 psf ppr based on a gross plot ratio of 2.1, said marketing agent Credo Real Estate. 

The owners had previously said they would sell the development at between S$42.5 million and S$45 million.  

Owners of three-bedroom apartments will receive between S$2.5 million and S$2.7 million in gross sales proceeds while those owning two-bedders will get around S$1.8 million to S$2 million.

Credo said the site could yield an additional gross floor area (GFA) of 1,105 sq ft (or about three percent of the GFA) for balcony space, with no development charge. 

Inclusive of the three percent balcony space, the land rate will be S$1,140 psf ppr. 

Meanwhile, the 75-unit 1919 Residences, located near Sophia Mansions, has been fully sold just weeks after its official launch. 

“Buyers who have missed out on the opportunity to own a new home in this popular residential enclave can look forward to a new development being launched on this site in the near future,” said Yong Choon Fah, Executive Director at Credo.

Sophia Mansions enjoys accessibility to Dhoby Ghaut MRT station and shopping malls like PoMo and Plaza Singapura. 

Private home prices poised to rise despite lacklustre sales

Conditions in the private property market are still ripe for moderate price growth despite slower sales in the last few months which hit an all-time low for the year in June.


According to latest figures released by the Urban Redevelopment Authority (URA), 1,371 private homes were sold during the month, a 19 percent decline month-on-month (m/m) from the 1,702 seen in May.


Including executive condominiums (ECs), home sales fell 16 percent m/m and reached 1,725.


OrangeTee noted that the weaker numbers did not come as a surprise, given that developers held back many launches in June due to the holiday season, aside from the uncertain global economic conditions.


But it said that buyers’ appetite for properties, especially in the Outside Central Region (OCR) remains fairly healthy. 


Png Poh Soon, Head of Research at Knight Frank Singapore, commented that developers continue to be competitive on their bids for well-located sites under the Government Land Sales (GLS) Programme. 


So far this year, demand for private homes has been robust, with more than 12,000 units sold in 1H2012, added the consultancy. 


River Isles, a 99-year leasehold project by Qingjian Realty was the top-selling project in June, with 263 units sold or 59.5 percent of the 442 units launched in the month.


Alan Cheong, Director of Research & Consultancy at Savills Singapore, said that strong sales at River Isles, which saw a median price of S$835 psf, implies that the mass market is capable of absorbing “that kind of pricing”. 


Among the best-selling projects last month were Sea Esta, 1919, Flo Residence, and Tropika East. 


Moving forward, Cheong noted that July could see robust sales from several major launches including Parc Olympia, Parc Centros, possibly River Sails and V on Shenton.


“Assuming a 25 percent sales rate, the above-mentioned projects alone would add 633 units to the new home sales numbers for July,” he said.


Meanwhile, Chia Siew Chuin, Director of Research & Advisory at Colliers International, believes that home buying sentiment will remain positive thanks to sustained yet moderated economic growth, rising inflation and low interest rates.


Nonetheless, “buying euphoria is expected to ease as pent-up demand is gradually being met. New sales volume is therefore expected to moderate to between 8,000 and 10,000 units for 2H2012. This will bring 2012’s total sales number to around 20,000 to 22,000 units”. 


Li Hiaw Ho, Executive Director at CBRE Research, predicts that new home sales could be around 4,000 units per quarter.


“While this number suggests a slowdown in sales momentum, the total take-up of new homes for the whole year is likely to reach a record high of 20,000 units.” 


At the same time, Dr Chua Yang Liang, Head of Research for South East Asia at Jones Lang LaSalle (JLL) said: “Previous policy intervention is now starting to work its way through the market and buyers are returning, especially to the CCR (Core Central Region), as landlords become more flexible on pricing and the price gap between the CCR and OCR narrows generating more buying interest.”


In addition, Singaporeans are also the main drivers of the region’s sales volume, “helping to soak up the unsold inventory”, he added.

Potong Pasir site may see hot contest

THE latest 99-year leasehold site in the vicinity of Potong Pasir MRT Station to be released by Urban Redevelopment Authority (URA) is expected to be hotly contested, because of the appeal of mixed-development projects, according to most analysts.

Analysts polled by BT yesterday evening predict 7-15 bids with the winning bid forecast in a wide range - $580-750 per square foot per plot ratio (psf ppr).

Yesterday evening, Urban Redevelopment Authority announced that an unnamed party has successfully applied for the site's release from the reserve list with an undertaking to bid at least $154.474 million or $500 psf ppr at the tender for the site.

The 88,267 sq ft plot, along Tai Thong Crescent, is zoned for residential use with commercial space on the first storey.

It is just across the road from a full private housing site along Upper Serangoon Road and Pheng Geck Avenue that was sold recently by URA to Santarli, which is involved in the construction business, for $628.22 psf ppr.

That tender, which closed in late June, attracted 13 bids.

The latest plot, at Tai Thong Crescent, is expected to generate a maximum gross floor area of about 308,945 sq ft and can potentially yield around 267 homes, according to URA's estimate.

R'ST Research director Ong Kah Seng says that the site's first-storey commercial component will position it ahead of the pure-residential sites in the vicinity sold at earlier state tenders.

"There are good schools like St Andrew's Junior and Secondary as well as Cedar Girls' Secondary School in the vicinity; hence the successful bidder has the option to offer mostly family-sized units," Mr Ong adds.

Lee Sze Teck, DWG's senior manager, research and consultancy, too points to the site's attractive location, about five minutes' walk from Potong Pasir MRT Station and adds that its commercial component will help address a shortfall in shopping amenities in the area.

"The injection of residential projects like 18 Woodsville, Nin Residence, The Sennett and the recently-sold Pheng Geck Avenue site will increase demand for amenities in the area," he notes.

Giving a slightly different take, SLP International executive director Nicholas Mak says the latest plot on offer is not as attractive as the three earlier residential sites sold in the vicinity due to its frontage along a "major road junction and a very busy fly-over".

Also, part of the development will have a two-storey height limit, which will restrict the development configuration, he adds.

For these reasons, Mr Mak suggests that the top bid for the Tai Thong Crescent land parcel could be in the $580-620 psf ppr range - below Santarli's price for the next-door site sold recently.

ERA Realty Network key executive officer Eugene Lim reckons the unsuccessful bidders at last month's tender for the next-door Pheng Geck Avenue plot may bid competitively for the latest land parcel on offer.

"Mixed developments are popular with home buyers and investors," he adds.

Analysts say the apartments in the Tai Thong Crescent project could sell at $1,250-1,450 psf.

DWG predicts the commercial space could fetch $4,000-4,500 psf.

A hairy start in the midst of a crisis

STARTING a business in the midst of a brewing financial crisis might cause even the bravest of entrepreneurs to baulk.

Not Ms Leonica Kei, who started her haircare business during one of the region's worst economic meltdowns.

The Asian financial crisis, about 15 years ago, proved no match for the intrepid entrepreneur who persisted in pursuing her passion after returning from the Institute of Trichologists in London, even as local and regional economies tanked. Trichology is the study of the health of the hair and scalp.

Ms Kei and her husband set aside $200,000 - proceeds of an earlier property sale - as operating funds for bringing the upmarket Philip Kingsley Trichological Centre to Ngee Ann City in 1997.

The centre, the brand's only international franchise, treats both hair and scalp problems. Its original centres are in London and New York.

'People were asking me if I was sure, wasn't it a bad time to start a business... But there are pros and cons; in any kind of crisis, you get better rentals and you get a choice of locations,' said the 49-year-old Ms Kei.

'We decided to set aside some capital and thought if we make it, we make it. If we can't, then that's it, we'll start all over again.'

And that risk has since paid off, with the firm pulling in revenue of just under $1 million last year at its current location at Palais Renaissance in the Orchard area. This is about 10 to 15 per cent more than 2010's turnover.

It also opened The Trichology Centre at The Wellness Lounge at Paragon Medical Centre this year - a collaboration with the Pacific Healthcare group - to house its research arm aimed at developing new products and treatments.

Armed with a degree in business from a university in London, Ms Kei took a left turn into the world of hairdressing by doing a nine-month course after graduation.

It was 'hip and cool back in the 1980s' with icons like Vidal Sassoon making their mark. Ms Kei was drawn into that world of fashion even as she pondered her next career move.

She enjoyed the creative aspect and went on to spend four years working in related fields.

For instance, she worked for cosmetics and beauty firms L'Oreal and Wella in Singapore before chancing on trichology and deciding to make a career of it.

The rigorous curriculum provided her with a holistic knowledge in other medical-related fields - such as biology, radiology and chemistry - allowing her to offer clients an alternative approach to hair health.

This involves taking vitamin supplements or requiring clients to go for blood tests to determine if, for example, the person is deficient in iron.

But it was not always smooth sailing as the field of trichology was relatively new and unknown when Ms Kei started out.

Customers were few and far between and the first three months of business were quiet. Ms Kei was also putting in long hours, initially running the business singlehandedly and training staff with no prior experience.

Business picked up only after she took out advertisements in the newspapers. Within a year, the firm began to make profits.

Some say that being a woman in the male-dominated world of business might be a challenge.

Ms Kei begs to differ, saying that being a female has been an asset in her line of work, especially since about 70 per cent of her clients are women.

The mother of two is now also working with pharmacists to develop her own brand of products to treat conditions like oily scalp or thinning hair - her latest plans to grow the business and be less dependent on her suppliers.

'But I want to wait till I'm happy with the basic range of products we develop before we can say it's time to expand,' Ms Kei said.

'I'm very fussy... I don't care how long it is going to take but I want to make sure that they are the right products.'

Still, she hopes to have one or two products ready for use by the end of the year.

However, Ms Kei emphasises that there is always a learning curve when it comes to running a business. Her latest challenge is figuring out how social media works and how it might be tapped to boost sales.

'You need a lot of passion and hard work when it comes to running a business. You can never know. You've got to just do it sometimes,' she said.

ABSD to have ripple effect on housing prices: expert

The additional buyer’s stamp duty (ABSD) imposed on foreigners purchasing private homes in Singapore has had a ‘ripple effect’ on prices and will eventually cool the market, said a property expert.

Dr. Liao Wen-Chi of the National University of Singapore's Department of Real Estate said that while foreigners commonly acquire properties in the central region, a decline in purchases due to the ABSD is expected to bring prices down in suburban areas as well. 

Analysis done on the property market from 2004 to 2007 showed a ripple effect whereby rising home prices in the central region caused similar upticks in other districts. 

Dr. Liao noted that the opposite could be a possibility as well. 

Research suggests that “with careful policy properly affecting the inflow of foreign liquidity to Singapore's real estate market, the government is able to keep a healthy growth of the market and ensure affordable housing”, he said during a real estate conference held at Marina Bay Sands, organised by the American Real Estate and Urban Economics Association and Asian Real Estate Society.

Meanwhile, Minister of State for National Development and Trade and Industry, Lee Yi Shyan, said that the government has sought to create a “sustainable, stable and transparent real estate market”. 

He added that aside from taking a multi-stakeholder approach, the participation of academia, researchers and real estate professionals will help in the creation and implementation of better policies. 

North-east region may see glut of homes, says report

A SPATE of project launches in the north-east has sparked concern that there will be an oversupply of homes in the coming years.

Sites that can yield more than 10,000 homes have been sold in Punggol, Buangkok and Sengkang alone since September 2009, according to Square Foot Research.

These have been developed into projects such as A Treasure Trove, Watertown, H2O Residences and The Luxurie.

If other north-east estates like Hougang, Seletar and parts of Upper Serangoon are included, almost 14,000 units on about 25 sites are on the cards. These units, which include executive condominiums (ECs), are expected to be ready from 2014 to 2016.

Three EC sites in Punggol that can yield about 1,415 homes are also up for grabs in the government land sales (GLS) programme for the current half of the year.

Factor in upcoming Housing Board (HDB) build-to-order launches as well - and you have a daunting set of numbers.

Experts say that while there remains demand from HDB upgraders for private and EC projects, the bumper supply of sites does look 'worrisome'.

OrangeTee head of research and consultancy Tan Kok Keong said investors should be cautious even though Seletar Aerospace Park might boost rental demand.

'Even if there is demand, competition for tenants will be fierce and investors might have to accept lower rents, and hence, lower rental yields,' added Mr Tan.

'It pays to be selective and to choose a unit near an MRT station or an employment place.'

Other experts have played down the oversupply threat.

Chris Koh International director Chris Koh said 'there is no oversupply at the moment as there is high demand'.

Many HDB owners who are familiar with the surroundings do not mind upgrading to a private unit there, he said.

For instance, Punggol - the newest HDB town - will enjoy private home demand as an increasing number of HDB owners within the estate finish up their five-year minimum occupation periods (MOPs). The area's waterway concept is also appealing.

Square Foot Research director Ooi Yi Tung also noted that the oversupply risk is also mitigated by the fact that 46 per cent of the upcoming flats in Punggol, Sengkang and Buangkok are ECs. This includes the EC sites to be sold in the later part of this year.

ECs have condo-like facilities and are an upmarket hybrid of public and private housing. They also have an MOP of five years and can then be sold only to Singaporeans and permanent residents.

This means it could take at least eight years - three years of construction and a five-year MOP - before they enter the secondary market. This staggered supply will reduce the chance of a glut.

But Mr Ooi said potential buyers should note the amount of building going on in new towns such as Punggol, where construction is expected to stretch to at least 2017 given the continued rolling out of new GLS sites.

'Also, there is no need to rush into buying as there are still ample vacant land sites in Punggol.'

Ms Chua Chor Hoon, DTZ head of Asia-Pacific research, noted that Pasir Ris, which has also seen an increasing number of launches, may be of more concern.

NV Residences, The Palette, Ripple Bay, Palm Isles, Seastrand and Sea Esta plus EC projects Belysa and Watercolours have all hit the market recently. The ratio of private to public housing in Pasir Ris is expected to more than double when these projects are completed. This ratio will be significantly higher than the islandwide figure and the highest ratio among all towns, she pointed out.

Some investors told The Straits Times that while they are aware of the large supply in the pipeline in the north-east region, they hope for a first-mover advantage.

Mrs Mae Seow, who bought an investment home in Punggol last October, said the unit was within her budget. Plans for Punggol to become an eco-town and its waterfront features also appealed.