Singapore Is Fighting Rising Seas to Save $50 Billion in Real Estate | Canada News Media
Connect with us

Real eState

Singapore Is Fighting Rising Seas to Save $50 Billion in Real Estate

Published

 on

(Bloomberg Markets) — During a half-century of independence, Singapore has fought to expand its territory, inch by hard-won inch. On the tip of the Malaysian peninsula, the island city-state piled up sand to expand its coastline and reclaim land from the sea.

In that time, Singapore has grown by one-quarter, adding landmass more than twice the size of Manhattan. At 284 square miles, Singapore is now approaching the size of all five boroughs of New York City. It plans to grow an additional 4% by 2030. It’s a striking accomplishment, given that many other coasts are receding because of rising sea levels, a result of climate change.

“We are not planning to lose any inch of land permanently,” says Ho Chai Teck, a deputy director at PUB, the government agency coordinating the effort to save the nation’s shores. “Singapore will build a continuous line of defense along our entire coast. This is something that we take very seriously.”

Roughly one-third of Singapore is less than 16 feet above sea level, low enough for flooding to cause punishing financial losses. Some of its most prized property sits on vulnerable land: the skyscrapers overlooking the Marina Bay waterfront, known for its luxury mall and casino, and the towers that house giant banks such as Singapore-based DBS Group Holdings Ltd., Southeast Asia’s largest, and UK-based Standard Chartered Plc.

Assuming 1.5C of warming, prime real estate in the city worth S$70 billion ($50 billion) faces a high risk of flooding, according to Bloomberg estimates using data from real estate company CBRE Group Inc. Another endangered, and vital, part of the country is Jurong Island, where Shell Plc and Exxon Mobil Corp. have oil and petrochemical operations.

“You’ve got small island nations, but they don’t have this much economic wealth,” says Benjamin Horton, a professor at Nanyang Technological University in Singapore who studies sea-level change. “The actual value of every square meter in Singapore is off the charts. This is a country more susceptible to sea-level rise than virtually any country in the world.”

In 2019, Prime Minister Lee Hsien Loong said that Singapore would need to spend S$100 billion over the next 100 years to protect against rising sea levels. The government has since put S$5 billion toward a coastal and flood protection fund. “Both the Singapore Armed Forces and climate change defenses are existential,” he said then. “These are life-and-death matters. Everything else must bend at the knee to safeguard the existence of our island nation.”

A day’s bike ride along Singapore’s coastal paths will take you past glittering skyscrapers and scenic dams, beaches and mangrove swamps—diverse scenes that make clear how the country must carefully tailor its approach. What Singapore does will be keenly watched by other populous coastal cities such as Bangkok, Miami, New York and Shanghai.

Fortifying the City

On a recent weekday, tourists and locals fly kites on a ­towering structure with dazzling views of Singapore’s skyline. But what they’re standing on is much more than an attraction. It’s a S$226 million dam called the Marina Barrage. Inside, seven giant pumps drain excess water into the sea during high tide and extreme rainfall. Currently, some kind of human-made barrier protects 70% of Singapore’s coastline. But the city-state will have to reinforce and improve those shields as tropical storms increase and sea levels rise.

The Hydroinformatics Institute and National University of Singapore are working with PUB to build a computer model simulating the combined effects of sea-level rise and rainfall on the country’s coastlines. When completed in 2025, it will help assess which areas are most vulnerable, based on the predicted depth and duration of floods. “We have to look at this in a very dynamic way,” Grace Fu, minister for sustainability and the environment, said at a September event launching a new coast and flood protection institute. “Protecting us too much, you waste a lot of resources. If you build the coastal protection solution too low, then you will find that, several generations later, you’ll need to enhance it.”

Government authorities are already considering storm surge barriers on Singapore’s waterways. The barriers would generally be open, so ships can travel to their destinations. But during a big storm, they would close, encircling the city’s industrial areas. Other possible measures: raising the height of current coastal reservoir dikes; tide gates, which block water; and more embankments, typically raised piles of earth. Singapore is also building a huge additional terminal at its airport on higher ground, 18 feet above average sea level. More than 6 miles of drainage are planned to keep runways clear of water.

Businesses are getting into the act, too. Real estate company City Developments Ltd. has built barriers and water-level sensors at the St. Regis Singapore hotel, Palais Renaissance shopping mall and Republic Plaza skyscraper. In the business district, Frasers Property’s 38-story tower has added floodgates. “More still needs to be done,” says David Fogarty, CBRE’s head of ESG consulting services for Singapore and Southeast Asia. “Companies are thinking about rising sea levels, but they aren’t acting fast enough.”

Enlisting Nature

At the Sungei Buloh Wetland Reserve, the roots of mangrove trees have all kinds of configurations. They can look like a pencil, a bent knee or a stilt. The tropical trees flourish in salty tidal waters. Their thick aboveground roots and trunks break waves and trap sediment—forming a natural barrier to rising seas.

To protect shorelines properly, mangrove forests should sprawl for hundreds of yards. In neighboring Indonesia, they can even stretch for miles. In Singapore, mangroves can reduce storm wave heights by more than 75%. Mangrove forests also soak up to four times as much carbon as rainforests.

But mangroves alone aren’t enough. Singapore is studying whether it can combine the trees with other barriers, called revetments, often made of stone or concrete. Experiments involving combined mangrove-rock revetments are underway at Kranji Coastal Nature Park, near the wetland reserve, and Pulau Hantu, an island off the southern coast.

Singapore’s existing sea walls and revetments limit one possible solution, encouraging the growth of more mangrove habitat, says Daisuke Taira, a mangrove researcher at the National University of Singapore’s Centre for ­Nature-based Climate Solutions. The country should preserve the current habitat of tropical trees, and their protective roots, researchers say. But it will likely have to rely more on barriers and other feats of engineering. When it comes to cultivating mangroves to keep the seas at bay, Taira says, “Singapore is one of the most challenging places.”

Borrowing From the Dutch

On Pulau Tekong, an island northeast of Singapore, giant machinery whirs and clanks as workers stabilize soil and lay out a network of intricately designed drains and pumps. The equipment collects and channels rainwater into a pond. Excess can then be pumped into the ocean. This system, along with sea walls, enables Singapore to do something extraordinary: reclaim land that’s below sea level.

Singapore is taking a page from the Netherlands, a third of which is below sea level. The Dutch built sea walls beyond their coastline, creating new tracts of land they call polders. A bean-shaped plot of land on Pulau Tekong is the first polder in Singapore. At 3 square miles, it will add 1% to Singapore’s landmass once it’s completed at the end of 2024 and will be used for military training.

Polders use less sand than the kind of reclamation Singapore has used in the past. That’s a huge advantage because it’s one of the world’s biggest importers of sand, which is expensive.

Singapore is adapting Dutch methods to the tropics. Its corner of the Pacific is calmer than the North Atlantic, so sea walls don’t need to be as high as in the Netherlands, according to JanJaap Brinkman, a director at Dutch water research institute Deltares, which is advising Singapore.

Still, Singapore has more intense rain, so its ponds, drainage canals and pumps are designed to cope with more water. Brinkman says the government is learning on its own and starting relatively small on Pulau Tekong: “Singapore wants to see if the technology is safe, and ensure everything is working well, before it takes the next step.”

Lee, Xu and Kua reported this story from Bloomberg’s Singapore bureau.

©2023 Bloomberg L.P.

Source link

Continue Reading

Real eState

Here are some facts about British Columbia’s housing market

Published

 on

 

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Real eState

B.C. voters face atmospheric river with heavy rain, high winds on election day

Published

 on

 

VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.

Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.

The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.

Wednesday was the last day for advance voting, which started on Oct. 10.

More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.

Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.

An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

Source link

Continue Reading

News

No shortage when it comes to B.C. housing policies, as Eby, Rustad offer clear choice

Published

 on

 

British Columbia voters face no shortage of policies when it comes to tackling the province’s housing woes in the run-up to Saturday’s election, with a clear choice for the next government’s approach.

David Eby’s New Democrats say the housing market on its own will not deliver the homes people need, while B.C. Conservative Leader John Rustad saysgovernment is part of the problem and B.C. needs to “unleash” the potential of the private sector.

But Andy Yan, director of the City Program at Simon Fraser University, said the “punchline” was that neither would have a hand in regulating interest rates, the “giant X-factor” in housing affordability.

“The one policy that controls it all just happens to be a policy that the province, whoever wins, has absolutely no control over,” said Yan, who made a name for himself scrutinizing B.C.’s chronic affordability problems.

Some metrics have shown those problems easing, with Eby pointing to what he said was a seven per cent drop in rent prices in Vancouver.

But Statistics Canada says 2021 census data shows that 25.5 per cent of B.C. households were paying at least 30 per cent of their income on shelter costs, the worst for any province or territory.

Yan said government had “access to a few levers” aimed at boosting housing affordability, and Eby has been pulling several.

Yet a host of other factors are at play, rates in particular, Yan said.

“This is what makes housing so frustrating, right? It takes time. It takes decades through which solutions and policies play out,” Yan said.

Rustad, meanwhile, is running on a “deregulation” platform.

He has pledged to scrap key NDP housing initiatives, including the speculation and vacancy tax, restrictions on short-term rentals,and legislation aimed at boosting small-scale density in single-family neighbourhoods.

Green Leader Sonia Furstenau, meanwhile, says “commodification” of housing by large investors is a major factor driving up costs, and her party would prioritize people most vulnerable in the housing market.

Yan said it was too soon to fully assess the impact of the NDP government’s housing measures, but there was a risk housing challenges could get worse if certain safeguards were removed, such as policies that preserve existing rental homes.

If interest rates were to drop, spurring a surge of redevelopment, Yan said the new homes with higher rents could wipe the older, cheaper units off the map.

“There is this element of change and redevelopment that needs to occur as a city grows, yet the loss of that stock is part of really, the ongoing challenges,” Yan said.

Given the external forces buffeting the housing market, Yan said the question before voters this month was more about “narrative” than numbers.

“Who do you believe will deliver a better tomorrow?”

Yan said the market has limits, and governments play an important role in providing safeguards for those most vulnerable.

The market “won’t by itself deal with their housing needs,” Yan said, especially given what he described as B.C.’s “30-year deficit of non-market housing.”

IS HOUSING THE ‘GOVERNMENT’S JOB’?

Craig Jones, associate director of the Housing Research Collaborative at the University of British Columbia, echoed Yan, saying people are in “housing distress” and in urgent need of help in the form of social or non-market housing.

“The amount of housing that it’s going to take through straight-up supply to arrive at affordability, it’s more than the system can actually produce,” he said.

Among the three leaders, Yan said it was Furstenau who had focused on the role of the “financialization” of housing, or large investors using housing for profit.

“It really squeezes renters,” he said of the trend. “It captures those units that would ordinarily become affordable and moves (them) into an investment product.”

The Greens’ platform includes a pledge to advocate for federal legislation banning the sale of residential units toreal estate investment trusts, known as REITs.

The party has also proposed a two per cent tax on homes valued at $3 million or higher, while committing $1.5 billion to build 26,000 non-market units each year.

Eby’s NDP government has enacted a suite of policies aimed at speeding up the development and availability of middle-income housing and affordable rentals.

They include the Rental Protection Fund, which Jones described as a “cutting-edge” policy. The $500-million fund enables non-profit organizations to purchase and manage existing rental buildings with the goal of preserving their affordability.

Another flagship NDP housing initiative, dubbed BC Builds, uses $2 billion in government financingto offer low-interest loans for the development of rental buildings on low-cost, underutilized land. Under the program, operators must offer at least 20 per cent of their units at 20 per cent below the market value.

Ravi Kahlon, the NDP candidate for Delta North who serves as Eby’s housing minister,said BC Builds was designed to navigate “huge headwinds” in housing development, including high interest rates, global inflation and the cost of land.

Boosting supply is one piece of the larger housing puzzle, Kahlon said in an interview before the start of the election campaign.

“We also need governments to invest and … come up with innovative programs to be able to get more affordability than the market can deliver,” he said.

The NDP is also pledging to help more middle-class, first-time buyers into the housing market with a plan to finance 40 per cent of the price on certain projects, with the money repayable as a loan and carrying an interest rate of 1.5 per cent. The government’s contribution would have to be repaid upon resale, plus 40 per cent of any increase in value.

The Canadian Press reached out several times requesting a housing-focused interview with Rustad or another Conservative representative, but received no followup.

At a press conference officially launching the Conservatives’ campaign, Rustad said Eby “seems to think that (housing) is government’s job.”

A key element of the Conservatives’ housing plans is a provincial tax exemption dubbed the “Rustad Rebate.” It would start in 2026 with residents able to deduct up to $1,500 per month for rent and mortgage costs, increasing to $3,000 in 2029.

Rustad also wants Ottawa to reintroduce a 1970s federal program that offered tax incentives to spur multi-unit residential building construction.

“It’s critical to bring that back and get the rental stock that we need built,” Rustad said of the so-called MURB program during the recent televised leaders’ debate.

Rustad also wants to axe B.C.’s speculation and vacancy tax, which Eby says has added 20,000 units to the long-term rental market, and repeal rules restricting short-term rentals on platforms such as Airbnb and Vrbo to an operator’s principal residence or one secondary suite.

“(First) of all it was foreigners, and then it was speculators, and then it was vacant properties, and then it was Airbnbs, instead of pointing at the real problem, which is government, and government is getting in the way,” Rustad said during the televised leaders’ debate.

Rustad has also promised to speed up approvals for rezoning and development applications, and to step in if a city fails to meet the six-month target.

Eby’s approach to clearing zoning and regulatory hurdles includes legislation passed last fall that requires municipalities with more than 5,000 residents to allow small-scale, multi-unit housing on lots previously zoned for single family homes.

The New Democrats have also recently announced a series of free, standardized building designs and a plan to fast-track prefabricated homes in the province.

A statement from B.C.’s Housing Ministry said more than 90 per cent of 188 local governments had adopted the New Democrats’ small-scale, multi-unit housing legislation as of last month, while 21 had received extensions allowing more time.

Rustad has pledged to repeal that law too, describing Eby’s approach as “authoritarian.”

The Greens are meanwhile pledging to spend $650 million in annual infrastructure funding for communities, increase subsidies for elderly renters, and bring in vacancy control measures to prevent landlords from drastically raising rents for new tenants.

Yan likened the Oct. 19 election to a “referendum about the course that David Eby has set” for housing, with Rustad “offering a completely different direction.”

Regardless of which party and leader emerges victorious, Yan said B.C.’s next government will be working against the clock, as well as cost pressures.

Yan said failing to deliver affordable homes for everyone, particularly people living on B.C. streets and young, working families, came at a cost to the whole province.

“It diminishes us as a society, but then also as an economy.”

This report by The Canadian Press was first published Oct. 17, 2024.

Source link

Continue Reading

Trending

Exit mobile version