Major Singapore Property Launches Unlikely In Next Three Months - Report

Source : Thomson Financial, Thursday March 13, 2008

Singapore may not see major property launches over the next three months as the negative sentiment on the sector was exacerbated by recent events, including the Kuwait fund pullout from a major purchase of high-end residential units, the Straits Times (news) reported Thursday, quoting market analysts.

Kuwait Finance House balked at its option to buy 97 units at Goodwood Residence, a project of GuocoLand (F17.SI - news) , for 818 million Singapore dollars to lapse while a landed housing site in Jurong West fetched a top bid of 78 dollars per square foot, which was significantly lower than expected, the newspaper said.

Major property developers such as CapitaLand (C31.SI - news) and City Developments (C09.SI - news) have said earlier they are willing to defer property launches until sentiment improves, probably in the second half of the year.

Only the 405-unit Waterfront Waves in Bedok Reservoir has been the new major condo launch this year, the Straits Times said.

'Not everyone can hold back their launches for a long time. But nobody is ready to lower their prices yet,' the newspaper quoted an unnamed property consultant as saying.

(1 US dollar = 1.38 Singapore dollars)