《联合早报》Feb 22, 2008
新加坡资产管理公司太平星集团（Pacific Star）以约10亿元买下新加坡能源大厦（Singapore Power Building），并计划将这个拥有30年历史的建筑改头换面，成为一个结合购物、餐饮场所和办公楼的项目。
太平星集团不愿透露收购价格，但据本报了解，太平星集团通过亚洲房地产资本基金（Asia Real Estate Income Fund，简称AREIF），出价约10亿元，或净可租用楼面(NLA)每平方英尺1820元，于前天买下大厦。
位于索美塞路的新加坡能源大厦，楼高17层，属于99年地契，目前还剩约66年，总净可租用楼面(NLA)约55万平方英尺，之前归新加坡能源公司和公用事业局所有。前者目前为该大厦的主要租户，占具约20万平方英尺的办公楼面。
太平星集团计划分阶段整修大厦，在第一阶段中，在面向索美塞路的那一方竖立一个两层楼高的玻璃外墙，以便让面向街道的零售商店能充分利用门面来吸引购物者。
集团也计划在街上摆放雕塑和竖起天幕，以美化建筑的外观。此外，地面层还将设有露天餐饮商店，购物者也将能从地面层乘搭电动扶梯直达二楼以上的商店。
这项计划有待当局批准，第一阶段的整修工程预计在2009年下半年完成。
太平星集团直接投资部总裁特斯拉（Benett Theseira）说：“在新加坡办公楼市场前景持续乐观的背景下，在进行重新定位计划后，我们有信心能取得强劲的租金增长、显著回报以及价值增值。”
集团也表示已有国际知名品牌、生活概念商店和餐饮业者对新加坡能源大厦的零售楼面表示兴趣。
Friday, February 22, 2008
吉门岭Gillman Heights 8业主将与发展商对簿公堂
《联合早报》Feb 21, 2008
原本已同意出售吉门岭公寓（Gillman Heights）的8名业主将与发展商对簿公堂。
这8名拥有4个吉门岭公寓单位的业主，是在2月11日向高等法院提出申请，希望能终止集体出售协议以及销售与购买协议，并希望高庭裁决分层地契局没有权限批准这宗集体出售交易。
嘉德置地（CapitaLand）与旅店置业(HPL)昨晚分别发表文告说，将采取法律行动，起诉这8名原本已同意销售单位的业主有意违约。
文告指出，这8名业主原本已同意出售单位，并曾通过销售委员会，向分层地契局申请，让集体出售交易通过。
嘉德置地（CapitaLand）与HPL Orchard Place和另外两个私人基金，是在去年2月斥资5亿4800万元买下拥有607个单位，面积庞大的吉门岭公寓，计划兴建约1200个单位的地标性私宅。
有鉴于这8名业主所提出的挑战，买方在同律师协商后，决定展开司法程序，和8人对簿公堂，指他们违反合同义务。这些义务包括必须遵守所签署的集体出售协议、遵循分层地契局的决定以及不做出有损销售与购买协议任何条款的举动。除此之外，买方也指8名业主的挑战是滥用诉讼程序。
分层地契局是在去年12月21日拒绝接受吉门岭公寓少数业主提出的一系列反对论据，批准该公寓集体出售，但想不到最近提出反对的却是原本已同意卖掉单位的业主。
根据报道，至少一名原本已同意出售单位的“大多数业主”（majority owners)开始发函给邻居，希望大家采取一致行动，向高庭提出裁决集体出售协议无效的申请。
这名承认发函的林先生，在信中指这宗交易应该取得至少90％的业主同意，而非原来的80％，并对销售价格感到不满。嘉德置地当时很快就做出反应，它发出至少两封律师信，给吉门岭所有的“大多数业主”，要他们不要做出任何阻拦或防止交易通过的举动。信中强调，销售协议对所有签署者来说，是具有“约束力”的，任何阻拦交易的尝试，可能被视为违约。
吉门岭公寓的608名屋主中，其中303个单位属于新加坡国立大学，另外有76名是反对出售的少数业主。22名少数业主在今年1月16日，也已向高庭提出推翻分层地契局决定的申请，指销售价格过低，并认为需要更多业主签名同意才行。
位于亚历山大路一带的吉门岭公寓是个私有化中等入息公寓（HUDC），虽建于1984年，但是在1995年才进行私营化，直到2002年才取得法定完工证书。同意出售的业主占87.4％左右。
原本已同意出售吉门岭公寓（Gillman Heights）的8名业主将与发展商对簿公堂。
这8名拥有4个吉门岭公寓单位的业主，是在2月11日向高等法院提出申请，希望能终止集体出售协议以及销售与购买协议，并希望高庭裁决分层地契局没有权限批准这宗集体出售交易。
嘉德置地（CapitaLand）与旅店置业(HPL)昨晚分别发表文告说，将采取法律行动，起诉这8名原本已同意销售单位的业主有意违约。
文告指出，这8名业主原本已同意出售单位，并曾通过销售委员会，向分层地契局申请，让集体出售交易通过。
嘉德置地（CapitaLand）与HPL Orchard Place和另外两个私人基金，是在去年2月斥资5亿4800万元买下拥有607个单位，面积庞大的吉门岭公寓，计划兴建约1200个单位的地标性私宅。
有鉴于这8名业主所提出的挑战，买方在同律师协商后，决定展开司法程序，和8人对簿公堂，指他们违反合同义务。这些义务包括必须遵守所签署的集体出售协议、遵循分层地契局的决定以及不做出有损销售与购买协议任何条款的举动。除此之外，买方也指8名业主的挑战是滥用诉讼程序。
分层地契局是在去年12月21日拒绝接受吉门岭公寓少数业主提出的一系列反对论据，批准该公寓集体出售，但想不到最近提出反对的却是原本已同意卖掉单位的业主。
根据报道，至少一名原本已同意出售单位的“大多数业主”（majority owners)开始发函给邻居，希望大家采取一致行动，向高庭提出裁决集体出售协议无效的申请。
这名承认发函的林先生，在信中指这宗交易应该取得至少90％的业主同意，而非原来的80％，并对销售价格感到不满。嘉德置地当时很快就做出反应，它发出至少两封律师信，给吉门岭所有的“大多数业主”，要他们不要做出任何阻拦或防止交易通过的举动。信中强调，销售协议对所有签署者来说，是具有“约束力”的，任何阻拦交易的尝试，可能被视为违约。
吉门岭公寓的608名屋主中，其中303个单位属于新加坡国立大学，另外有76名是反对出售的少数业主。22名少数业主在今年1月16日，也已向高庭提出推翻分层地契局决定的申请，指销售价格过低，并认为需要更多业主签名同意才行。
位于亚历山大路一带的吉门岭公寓是个私有化中等入息公寓（HUDC），虽建于1984年，但是在1995年才进行私营化，直到2002年才取得法定完工证书。同意出售的业主占87.4％左右。
Ascott Shares Face Suspension From SGX
Source : Channel NewsAsia, 21 February 2008
Shares of Ascott Group are likely to be suspended, now that CapitaLand has gained control of 91.7 percent of the company.
Under listing rules, the Singapore Exchange may suspend a stock when its free float falls below 10 percent.
In a statement, CapitaLand says it will not appeal for the trading suspension to be lifted. The company has said that it intends to take the Ascott Group private.
However, it needs to acquire 97 percent of Ascott in order to exercise its right to compulsorily acquire the remaining shares of the company.
CapitaLand has offered to buy all remaining shares of Ascott that it does not own at S$1.73 each. The offer will close at 5.30pm on 26 February. - CNA/ir
Shares of Ascott Group are likely to be suspended, now that CapitaLand has gained control of 91.7 percent of the company.
Under listing rules, the Singapore Exchange may suspend a stock when its free float falls below 10 percent. In a statement, CapitaLand says it will not appeal for the trading suspension to be lifted. The company has said that it intends to take the Ascott Group private.
However, it needs to acquire 97 percent of Ascott in order to exercise its right to compulsorily acquire the remaining shares of the company.
CapitaLand has offered to buy all remaining shares of Ascott that it does not own at S$1.73 each. The offer will close at 5.30pm on 26 February. - CNA/ir
Experts Say Grade A Office Rentals To Continue Rising In 2008
Source : Channel NewsAsia, 22 February 2008
Rentals of Grade A offices in Singapore are expected to continue rising this year.
According to property consultant Savills, average office rentals here may even nudge above that of Hong Kong's, currently the highest in the region.
They added that Singapore's office property sector will continue to remain buoyant despite worries over the US sub-prime crisis.
One Raffles Quay in Singapore's Central Business District
"Even in the current environment which is rather uncertain, we noticed that the financial services community is continuing to grow in Asia. And we noticed this in HK and in Singapore, so demand remains very strong here. That is going to continue to push up rents in the grade A office market," said Simon Smith, Deputy Managing Director, Savills Valuation and Professional Services.
Savills is expecting prime office rents in Singapore to jump by 15-20% this year, down from the 90% jump in 2007. Vacancy rates for offices hit as low as 0.2% late last year.
Savills said Singapore is attractive to overseas investors looking at the office property sector in the region.
Robert McKellar, CEO (Asia Pacific), Savills Asia Pacific said: "Office is primarily very attractive. Of course, (there are) very few assets for sale and that makes it very difficult for any overseas investor to get access to stock. Nevertheless, if the opportunity arises, then definitely we'll go for a secure investment in Singapore.
"For example some of the German open-ended funds that are increasingly wanting to have a bigger slice of the Asian real estate markets; they see Singapore as an attractive market because of the fact that its lots are risk-free.
"They are looking to have a base from which to invest into the region, and (it's) ideal for them, acquiring an asset in Singapore which is risk-free, which has stabilised market, strong economy and low taxation."
Meanwhile, another property consultant CB Richard Ellis (CBRE) is estimating that about 10.1 million square feet of new office space in Singapore will be completed by end of 2012.
Some 67% of the supply coming into stream within the next three years is expected to be Grade A office space. This means a doubling of prime office space.
CBRE said monthly rentals for prime office space averaged S$15 per square foot from October to December of last year, up 92% on year. It is expecting these to average S$17 per square foot by the end of the year.
Meanwhile, luxury residences will also see prices jumping between 8-12% in 2008. - CNA /ls
Rentals of Grade A offices in Singapore are expected to continue rising this year.
According to property consultant Savills, average office rentals here may even nudge above that of Hong Kong's, currently the highest in the region.
They added that Singapore's office property sector will continue to remain buoyant despite worries over the US sub-prime crisis.
One Raffles Quay in Singapore's Central Business District"Even in the current environment which is rather uncertain, we noticed that the financial services community is continuing to grow in Asia. And we noticed this in HK and in Singapore, so demand remains very strong here. That is going to continue to push up rents in the grade A office market," said Simon Smith, Deputy Managing Director, Savills Valuation and Professional Services.
Savills is expecting prime office rents in Singapore to jump by 15-20% this year, down from the 90% jump in 2007. Vacancy rates for offices hit as low as 0.2% late last year.
Savills said Singapore is attractive to overseas investors looking at the office property sector in the region.
Robert McKellar, CEO (Asia Pacific), Savills Asia Pacific said: "Office is primarily very attractive. Of course, (there are) very few assets for sale and that makes it very difficult for any overseas investor to get access to stock. Nevertheless, if the opportunity arises, then definitely we'll go for a secure investment in Singapore.
"For example some of the German open-ended funds that are increasingly wanting to have a bigger slice of the Asian real estate markets; they see Singapore as an attractive market because of the fact that its lots are risk-free.
"They are looking to have a base from which to invest into the region, and (it's) ideal for them, acquiring an asset in Singapore which is risk-free, which has stabilised market, strong economy and low taxation."
Meanwhile, another property consultant CB Richard Ellis (CBRE) is estimating that about 10.1 million square feet of new office space in Singapore will be completed by end of 2012.
Some 67% of the supply coming into stream within the next three years is expected to be Grade A office space. This means a doubling of prime office space.
CBRE said monthly rentals for prime office space averaged S$15 per square foot from October to December of last year, up 92% on year. It is expecting these to average S$17 per square foot by the end of the year.
Meanwhile, luxury residences will also see prices jumping between 8-12% in 2008. - CNA /ls
OCBC's FY Profit Flat At S$2.07b, But Core Net Profit Up 30%
Source : Channel NewsAsia, 22 February 2008
Singapore's third largest lender OCBC Bank has reported flat profits for the full year at S$2.07 billion, marginally higher than S$2 billion profit in 2006.
Excluding divestment gains from non-core assets and tax refunds, OCBC's core net profit beat expectations by growing 30% to S$1.88 billion on the back of strong loans growth.
OCBC is seeing broad-based revenue growth across its key markets and business units, in particular Great Eastern Holdings.
The lenders booked a 25% jump in net interest income, thanks to a sharp 19% jump in loans driven by the buoyant property market.
But for the fourth quarter, it had to set aside an additional S$10 million in provisions for its portfolio in collateralised debt obligations, bringing the total to S$231 million.
This reduces the value of its asset-backed securities by 85%.
"We've taken 85% so there isn't much left. As far as we're concerned it's nothing to worry about one way or another," said OCBC's CEO David Conner.
OCBC said the economic outlook for 2008 is uncertain because of the slowing US economy, but the bank's CEO said there are reasons to stay positive.
Said Conner: "We still see reasonably healthy demand out there. I think most people are coming to the conclusion that perhaps the residential market will slow a little bit. We can't forget that we have a big SME business as well – the investments in petrochemical plants that have been announced - about $16 (to) $18 billion worth of investments coming through.
"So there are many parts of the economy that are still quite hot and likely to see demand growing. We think that there's reasonable expectation for healthy loan demand on the SME front, and to some extent on the real estate front."
He also had some good words for Richard Stanley, the incoming CEO for rival bank DBS, who worked under him previously at Citibank.
"(Richard) worked for me, he was my subordinate for about 5 and a half years here in Singapore. He's a good banker, solid guy," said Conner.
Stanley previously worked at Citibank from 1989 to 1995 when Connor was its country manager.
Connor was also asked about OCBC's plans for its stake in the tin smelting and property firm Straits Trading Company. He said the lender is moving away from its earlier stance and will consider the revised offer from the Tan family.
OCBC had earlier said it does not intend to sell its 6.2% stake in the Straits Trading Company. That was when the highest offer was S$6.55 a share by the Lee family.
With the latest offer by the Tan family through Tecity at S$6.70 per share, OCBC is now saying it's reviewing the proposal. - CNA /ls
Singapore's third largest lender OCBC Bank has reported flat profits for the full year at S$2.07 billion, marginally higher than S$2 billion profit in 2006.
Excluding divestment gains from non-core assets and tax refunds, OCBC's core net profit beat expectations by growing 30% to S$1.88 billion on the back of strong loans growth. OCBC is seeing broad-based revenue growth across its key markets and business units, in particular Great Eastern Holdings.
The lenders booked a 25% jump in net interest income, thanks to a sharp 19% jump in loans driven by the buoyant property market.
But for the fourth quarter, it had to set aside an additional S$10 million in provisions for its portfolio in collateralised debt obligations, bringing the total to S$231 million.
This reduces the value of its asset-backed securities by 85%.
"We've taken 85% so there isn't much left. As far as we're concerned it's nothing to worry about one way or another," said OCBC's CEO David Conner.
OCBC said the economic outlook for 2008 is uncertain because of the slowing US economy, but the bank's CEO said there are reasons to stay positive.
Said Conner: "We still see reasonably healthy demand out there. I think most people are coming to the conclusion that perhaps the residential market will slow a little bit. We can't forget that we have a big SME business as well – the investments in petrochemical plants that have been announced - about $16 (to) $18 billion worth of investments coming through.
"So there are many parts of the economy that are still quite hot and likely to see demand growing. We think that there's reasonable expectation for healthy loan demand on the SME front, and to some extent on the real estate front."
He also had some good words for Richard Stanley, the incoming CEO for rival bank DBS, who worked under him previously at Citibank.
"(Richard) worked for me, he was my subordinate for about 5 and a half years here in Singapore. He's a good banker, solid guy," said Conner.
Stanley previously worked at Citibank from 1989 to 1995 when Connor was its country manager.
Connor was also asked about OCBC's plans for its stake in the tin smelting and property firm Straits Trading Company. He said the lender is moving away from its earlier stance and will consider the revised offer from the Tan family.
OCBC had earlier said it does not intend to sell its 6.2% stake in the Straits Trading Company. That was when the highest offer was S$6.55 a share by the Lee family.
With the latest offer by the Tan family through Tecity at S$6.70 per share, OCBC is now saying it's reviewing the proposal. - CNA /ls
Singapore Ecstatic At Winning Youth Olympics Bid
Source : Channel NewsAsia, 21 February 2008
Singapore erupted in celebration on Thursday after winning the right to host the inaugural Youth Olympics in 2010, with Prime Minister Lee Hsien Loong calling it a new era for Southeast Asian sport.
The International Olympic Committee (IOC) awarded the Games to the city-state ahead of Moscow by a vote of 53 to 44. It will be the first time that Singapore is hosting a multi-disciplinary sporting event of such a magnitude.
"Friends and fellow Singaporeans, congratulations to all of us," said Mr Lee in front of thousands of cheering supporters wearing red and white, the colours of the national flag.
Related Video Link 1 - http://tinyurl.com/3cph2x
Singapore wins bid to host 2010 YOG
Related Video Link 2 - http://tinyurl.com/2kodhf
PM Lee on Singapore's winning bid
"It is a great honour and privilege for all of us. It will be the first time that the Olympic flame will be in Southeast Asia and in Singapore.
"We will be the focus of a new era for sporting development for Southeast Asia and Singapore. We worked very hard, it was a national effort, but more than that it was a people effort."
Vivian Balakrishnan, Minister for Community Development, Youth, and Sports, called it "an historic day".
"By choosing Singapore, the IOC has declared that it is possible for small young cities like Singapore to host the Olympic movement," he said.
"On Friday, the hard work begins. I know we will succeed because every Singaporean will go all out to welcome the youth of the world to Singapore in 2010."
Moscow had Russian President Vladimir Putin in its corner, far deeper pockets than Singapore in terms of budget, and long-standing ties with the IOC on its side. But Singapore played its size-is-not-everything card to perfection.
A huge buzz has been generated among Singaporeans, with people from all backgrounds in the nation of 4.5 million people supporting the bid.
Online, they have shown their backing by blogging, chatting on forums, posting videos and setting up websites. And more than 550 companies publicly backed the bid.
The brainchild of IOC chief Jacques Rogge, the Youth Olympics will feature traditional sports such as athletics and swimming, and also some innovative events such as beach-wrestling and BMX bike riding.
Rogge made the announcement himself from the IOC headquarters in Lausanne, ending a process that originally started with nine cities in contention. This was whittled down to Athens, Bangkok, Turin, Singapore and Moscow before it became a two-horse race.
"This is a key moment for the Olympic movement," said Rogge. "Singapore has put together a very exciting project. Hosting the Youth Olympic Games for the first time is a great responsibility, and I have every confidence in the team in Singapore.
"I have no doubt that their professionalism and enthusiasm will be instrumental in the staging of a successful Youth Olympic Games in 2010."
The Games will see 3,500 athletes, aged between 14 and 18, competing in 26 sports.
Singapore is proposing 24 venues, with four being built as temporary facilities, including one large cluster of 13 facilities in its Marina-Kallang area.
The Youth Olympic Village will be located at a new multi-million-dollar student residential complex at the National University of Singapore, slated for completion months before the event.
Singapore is budgeting US$75.5 million to run the Olympics, covering everything from educational and cultural programmes to development of services and transport. The Games will run from August 14-16. - AFP/ir
Special Report
Singapore is host of the inaugural Summer Youth Olympic Games in 2010.
To screams of delight, the hope of the little nation was realised by the International Olympics Committee (IOC) in an announcement broadcast live from Switzerland on 21 February.
It beat Moscow,the other candidate city shortlisted with Singapore from nine other cities which had put in bids to host the inaugural event.
Some 3,200 athletes aged between 14 and 18 are expected to take part in the Youth Olympic games which will see sporting events as well as forums and educational workshops.
Singapore erupted in celebration on Thursday after winning the right to host the inaugural Youth Olympics in 2010, with Prime Minister Lee Hsien Loong calling it a new era for Southeast Asian sport.
The International Olympic Committee (IOC) awarded the Games to the city-state ahead of Moscow by a vote of 53 to 44. It will be the first time that Singapore is hosting a multi-disciplinary sporting event of such a magnitude. "Friends and fellow Singaporeans, congratulations to all of us," said Mr Lee in front of thousands of cheering supporters wearing red and white, the colours of the national flag.
Related Video Link 1 - http://tinyurl.com/3cph2x
Singapore wins bid to host 2010 YOG
Related Video Link 2 - http://tinyurl.com/2kodhf
PM Lee on Singapore's winning bid
"It is a great honour and privilege for all of us. It will be the first time that the Olympic flame will be in Southeast Asia and in Singapore.
"We will be the focus of a new era for sporting development for Southeast Asia and Singapore. We worked very hard, it was a national effort, but more than that it was a people effort." Vivian Balakrishnan, Minister for Community Development, Youth, and Sports, called it "an historic day".
"By choosing Singapore, the IOC has declared that it is possible for small young cities like Singapore to host the Olympic movement," he said.
"On Friday, the hard work begins. I know we will succeed because every Singaporean will go all out to welcome the youth of the world to Singapore in 2010."
Moscow had Russian President Vladimir Putin in its corner, far deeper pockets than Singapore in terms of budget, and long-standing ties with the IOC on its side. But Singapore played its size-is-not-everything card to perfection.
A huge buzz has been generated among Singaporeans, with people from all backgrounds in the nation of 4.5 million people supporting the bid. Online, they have shown their backing by blogging, chatting on forums, posting videos and setting up websites. And more than 550 companies publicly backed the bid.
The brainchild of IOC chief Jacques Rogge, the Youth Olympics will feature traditional sports such as athletics and swimming, and also some innovative events such as beach-wrestling and BMX bike riding.
Rogge made the announcement himself from the IOC headquarters in Lausanne, ending a process that originally started with nine cities in contention. This was whittled down to Athens, Bangkok, Turin, Singapore and Moscow before it became a two-horse race.
"This is a key moment for the Olympic movement," said Rogge. "Singapore has put together a very exciting project. Hosting the Youth Olympic Games for the first time is a great responsibility, and I have every confidence in the team in Singapore.
"I have no doubt that their professionalism and enthusiasm will be instrumental in the staging of a successful Youth Olympic Games in 2010."
The Games will see 3,500 athletes, aged between 14 and 18, competing in 26 sports.
Singapore is proposing 24 venues, with four being built as temporary facilities, including one large cluster of 13 facilities in its Marina-Kallang area.
The Youth Olympic Village will be located at a new multi-million-dollar student residential complex at the National University of Singapore, slated for completion months before the event.
Singapore is budgeting US$75.5 million to run the Olympics, covering everything from educational and cultural programmes to development of services and transport. The Games will run from August 14-16. - AFP/ir
Special Report
Singapore is host of the inaugural Summer Youth Olympic Games in 2010.
To screams of delight, the hope of the little nation was realised by the International Olympics Committee (IOC) in an announcement broadcast live from Switzerland on 21 February.
It beat Moscow,the other candidate city shortlisted with Singapore from nine other cities which had put in bids to host the inaugural event.
Some 3,200 athletes aged between 14 and 18 are expected to take part in the Youth Olympic games which will see sporting events as well as forums and educational workshops.
'US Has Slipped Into Recession'
Source : The Straits Times, Feb 22, 2008
NEW YORK - THE United States economy is in a recession, albeit a mild one, as a weakening consumer sector has compounded ongoing problems in the housing and credit markets, according to UBS economists.
'It's not coming. It's here,' UBS said in a research report on Wednesday.
The Federal Reserve on Wednesday sharply lowered its forecast for US economic growth for this year, but it is still expecting the economy to avoid a recession. Citing a deepening housing slump and tight credit, the Fed lowered its forecast to between 1.3 per cent and 2 per cent from a range of 1.8 per cent to 2.5 per cent it had projected in November last year.
UBS economists forecast US gross domestic product to fall 0.6 percentage point from the end of last year to the middle of this year.
The projected mild contraction will be led by the first decline in personal spending since the recession of 1991, UBS said.
Last month, the US government said the economy grew at an annual rate of 0.4 per cent in the fourth quarter of last year and expanded 2.2 per cent for the entire year, the weakest pace in five years. - REUTERS
NEW YORK - THE United States economy is in a recession, albeit a mild one, as a weakening consumer sector has compounded ongoing problems in the housing and credit markets, according to UBS economists.
'It's not coming. It's here,' UBS said in a research report on Wednesday.
The Federal Reserve on Wednesday sharply lowered its forecast for US economic growth for this year, but it is still expecting the economy to avoid a recession. Citing a deepening housing slump and tight credit, the Fed lowered its forecast to between 1.3 per cent and 2 per cent from a range of 1.8 per cent to 2.5 per cent it had projected in November last year.
UBS economists forecast US gross domestic product to fall 0.6 percentage point from the end of last year to the middle of this year.
The projected mild contraction will be led by the first decline in personal spending since the recession of 1991, UBS said.
Last month, the US government said the economy grew at an annual rate of 0.4 per cent in the fourth quarter of last year and expanded 2.2 per cent for the entire year, the weakest pace in five years. - REUTERS
Development Fees May Jump For Non-Residential Sites
Source : The Straits Times, Feb 22, 2008
For residential areas where strong land sales have lifted values, charges could surge
DEVELOPERS may soon have to pay more to redevelop non-residential sites such as land for hotels or hospitals.
A key government fee for redeveloping sites will be revised again next month, and property consultants expect it to be raised for land used for purposes other than to build homes.
The good news is: Development charges should not jump much for residential plots this time, after already having been jacked up a few times last year.
Selected areas, however, could still see bigger fee hikes, said consultants. These include Novena, Geylang, Ang Mo Kio and Orchard Boulevard, where recent strong land sales have pushed up values.
Development charges, which can amount to millions of dollars, are based on recent land and property values. They are calculated based on sectors and 118 locations, and adjusted in March and September every year to keep them up to date.
A rise in these charges for residential sites in some areas means that, for instance, it would be more expensive for developers to buy and redevelop collective sale estates in these parts of Singapore.
Overall, however, the current slowdown in the housing market means that the upcoming round of revisions should result in only very moderate rises for most residential sites.
Development charges for non-landed residential sites are likely to go up by only 10 per cent on average, compared to 58 per cent last September, said Ms Tay Huey Ying, the director of research and consultancy at Colliers International.
She said the soaring land prices that sent development charges surging last year have 'screeched almost to a halt' since last September.
In particular, the collective sale market - previously the main driver of spikes in development charges - has quietened to near-silence in the last few months.
Consultancy CB Richard Ellis also said it expects only 'moderate increases' in selected locations. These include Sixth Avenue and Sentosa for landed sites and Ardmore and Orchard Boulevard for non-landed sites.
It suggested that the Government may also slow the rate of rises in development fees after taking into consideration the 'subdued state' of the residential market. The once-frenzied response to both development sites and new home launches has waned significantly.
On the other hand, non-residential sites - including hospital, hotel, office and industrial land - are still seeing buoyant activity and could be subject to heftier fee hikes.
Hospital land could see the biggest overall hike in charges, boosted by the recent record bid for a state-owned site at Novena, said Colliers' Ms Tay. She is projecting a rise of between 15 per cent and 20 per cent on average for hospital sites.
DTZ Debenham Tie Leung added that funds have been moving their investments into hospital assets in Singapore, which could also prompt a rise in the development fees for this sector.
Also, industrial land - which saw a rise in development fees of just 2 per cent in the last round - should experience a much bigger jump, said consultants.
Office and hotel plots are also expected to have their development charges raised, by at least 30 per cent, said Jones Lang LaSalle.
Its director for South Asia research, Mr Chua Yang Liang, said the fees could be pushed up by recent office land sales at Jalan Sultan and Toa Payoh, and hotel plot sales at Upper Pickering Street and New Market Road.
MODERATE RISES
Overall, the current slowdown in the housing market means that the upcoming round of revisions for development charges should result in only very moderate rises for most residential sites.
BUOYANT ACTIVITY
On the other hand, non-residential sites - including hospital, hotel, office and industrial land - are still seeing buoyant activity and could be subject to heftier fee hikes.
For residential areas where strong land sales have lifted values, charges could surge
DEVELOPERS may soon have to pay more to redevelop non-residential sites such as land for hotels or hospitals.
A key government fee for redeveloping sites will be revised again next month, and property consultants expect it to be raised for land used for purposes other than to build homes.
The good news is: Development charges should not jump much for residential plots this time, after already having been jacked up a few times last year.Selected areas, however, could still see bigger fee hikes, said consultants. These include Novena, Geylang, Ang Mo Kio and Orchard Boulevard, where recent strong land sales have pushed up values.
Development charges, which can amount to millions of dollars, are based on recent land and property values. They are calculated based on sectors and 118 locations, and adjusted in March and September every year to keep them up to date.
A rise in these charges for residential sites in some areas means that, for instance, it would be more expensive for developers to buy and redevelop collective sale estates in these parts of Singapore.
Overall, however, the current slowdown in the housing market means that the upcoming round of revisions should result in only very moderate rises for most residential sites.
Development charges for non-landed residential sites are likely to go up by only 10 per cent on average, compared to 58 per cent last September, said Ms Tay Huey Ying, the director of research and consultancy at Colliers International.
She said the soaring land prices that sent development charges surging last year have 'screeched almost to a halt' since last September.
In particular, the collective sale market - previously the main driver of spikes in development charges - has quietened to near-silence in the last few months.
Consultancy CB Richard Ellis also said it expects only 'moderate increases' in selected locations. These include Sixth Avenue and Sentosa for landed sites and Ardmore and Orchard Boulevard for non-landed sites.
It suggested that the Government may also slow the rate of rises in development fees after taking into consideration the 'subdued state' of the residential market. The once-frenzied response to both development sites and new home launches has waned significantly.
On the other hand, non-residential sites - including hospital, hotel, office and industrial land - are still seeing buoyant activity and could be subject to heftier fee hikes.
Hospital land could see the biggest overall hike in charges, boosted by the recent record bid for a state-owned site at Novena, said Colliers' Ms Tay. She is projecting a rise of between 15 per cent and 20 per cent on average for hospital sites.
DTZ Debenham Tie Leung added that funds have been moving their investments into hospital assets in Singapore, which could also prompt a rise in the development fees for this sector.
Also, industrial land - which saw a rise in development fees of just 2 per cent in the last round - should experience a much bigger jump, said consultants.
Office and hotel plots are also expected to have their development charges raised, by at least 30 per cent, said Jones Lang LaSalle.
Its director for South Asia research, Mr Chua Yang Liang, said the fees could be pushed up by recent office land sales at Jalan Sultan and Toa Payoh, and hotel plot sales at Upper Pickering Street and New Market Road.
MODERATE RISES
Overall, the current slowdown in the housing market means that the upcoming round of revisions for development charges should result in only very moderate rises for most residential sites.
BUOYANT ACTIVITY
On the other hand, non-residential sites - including hospital, hotel, office and industrial land - are still seeing buoyant activity and could be subject to heftier fee hikes.
Sold for $2m: One of 37 chalets at airshow site
Source : The Straits Times, Feb 22, 2008
ONE of the latest investments in Singapore by American defence giant Lockheed Martin is a beachfront bungalow at the Singapore Airshow site.
The final bill for the two-storey structure when fully furnished came to 'about $2 million', said Mr Jim Gribbon, Lockheed Martin's Singapore-based vice-president for South-east Asia, yesterday.
The 37 chalets that line the strip of reclaimed land facing Pulau Tekong - literally a stone's throw from the high-tide mark - are popular watering holes for aerospace executives as they wine and dine potential clients.
Most chalets come with open viewing decks on their roofs. These have proven popular as vantage points to catch the daily aerial displays.
To get past the front door of most chalets, one needs to be invited.
'We've had a non-stop stream of customers and visitors. One of the key times is during the flying display and we've had the pleasure of hosting various delegations from the viewing deck.
'We got a magnificent view as the planes came roaring past,' said Mr Raymond Francis, Boeing's Singapore-based communications director for South-east Asia.
Chalet tenants have spared no effort to make their guests feel welcome.
For instance, European aircraft maker Airbus flew in a French chef to whip up gastronomic delights in a chalet that one visitor described as 'looking like a five-star hotel'.
Unlike the previous airshow where chalets were torn down after the event, four exhibitors who built their chalets will keep the structures until the next event two years down the road.
One company said it had not decided what to do with its chalet in the year-plus lull before the Singapore Airshow 2010, but there is a possibility that the property may be rented out.
ONE of the latest investments in Singapore by American defence giant Lockheed Martin is a beachfront bungalow at the Singapore Airshow site.
The final bill for the two-storey structure when fully furnished came to 'about $2 million', said Mr Jim Gribbon, Lockheed Martin's Singapore-based vice-president for South-east Asia, yesterday.
The 37 chalets that line the strip of reclaimed land facing Pulau Tekong - literally a stone's throw from the high-tide mark - are popular watering holes for aerospace executives as they wine and dine potential clients.
Most chalets come with open viewing decks on their roofs. These have proven popular as vantage points to catch the daily aerial displays.
To get past the front door of most chalets, one needs to be invited.
'We've had a non-stop stream of customers and visitors. One of the key times is during the flying display and we've had the pleasure of hosting various delegations from the viewing deck.
'We got a magnificent view as the planes came roaring past,' said Mr Raymond Francis, Boeing's Singapore-based communications director for South-east Asia.
Chalet tenants have spared no effort to make their guests feel welcome.
For instance, European aircraft maker Airbus flew in a French chef to whip up gastronomic delights in a chalet that one visitor described as 'looking like a five-star hotel'.
Unlike the previous airshow where chalets were torn down after the event, four exhibitors who built their chalets will keep the structures until the next event two years down the road.
One company said it had not decided what to do with its chalet in the year-plus lull before the Singapore Airshow 2010, but there is a possibility that the property may be rented out.
Investments Pour Into Seletar Aerospace Park
Source : The Business Times, February 22, 2008
SINGAPORE AIRSHOW 2008
INVESTMENTS are gathering pace at Seletar Aerospace Park, with ST Aerospace boosting its plane conversion capacity by opening another hangar yesterday, and Pratt & Whitney (P&W) breaking ground on an aerospace campus.
ST Aero's latest $17.3 million two-bay hangar gives it eight wide-body and 13 narrow-body bays in Singapore.
Besides capacity expansion, the group has also boosted its capability with the introduction of passenger-to-freighter conversions in Singapore. These were previously done at its Mobile, Alabama facility in the US.
'ST Aerospace's investment in Hangar 700 is testament to Singapore's strong engineering capabilities,' Trade and Industry Minister Lim Hng Kiang said at the opening yesterday.
With conversion of a Boeing 757 costing about US$5.5 million, this is a significant and growing segment for the sector, he noted.
P&W, meanwhile, broke ground on a US$30 million facility that will form the centrepiece of its Global Service Partners maintenance, repair and overhaul (MRO) business in Singapore.
The first phase of the multi-building campus is expected to be completed by the third quarter of next year, with the rest coming on line over two-and-a-half years.
P&W has recently broadened the services it offers in Singapore to include high-value areas such as engineering research and development (R&D). Staff from P&W's Asian aerospace engineering business, Global Services Engineering-Asia, will be housed in the new facility.
The facility will become P&W's hub for engineering and technical work, senior vice-president and general manager Jim Keenan said. This will generate US$20-30 million of extra annual revenue from 2010 when the first phase becomes operational, rising to an extra US$50 million a year as the other phases kick in.
The 30 engineering specialists at its present Loyang facility will move to Seletar, where numbers will rise to 60-90.
'The development of an aerospace hub strategically located here will allow for the efficiency and logistics improvements necessary to meet the needs of P&W Global Service Partners' growing customer base in Asia,' Mr Keenan said.
Seletar Aerospace Park is a 300 ha development cluster for aerospace MRO, design and manufacturing, training and business/ general aviation. It offers synergy and economies of scale to major aerospace companies, with ST Aerospace, Rolls-Royce and P&W the first anchor tenants.
There are also plans to make Seletar Airport the region's premier business aviation hub.
The government has announced plans to extend the runway and introduce instrument landing systems to allow all-weather access.
SINGAPORE AIRSHOW 2008
INVESTMENTS are gathering pace at Seletar Aerospace Park, with ST Aerospace boosting its plane conversion capacity by opening another hangar yesterday, and Pratt & Whitney (P&W) breaking ground on an aerospace campus.
ST Aero's latest $17.3 million two-bay hangar gives it eight wide-body and 13 narrow-body bays in Singapore.
Besides capacity expansion, the group has also boosted its capability with the introduction of passenger-to-freighter conversions in Singapore. These were previously done at its Mobile, Alabama facility in the US.
'ST Aerospace's investment in Hangar 700 is testament to Singapore's strong engineering capabilities,' Trade and Industry Minister Lim Hng Kiang said at the opening yesterday.
With conversion of a Boeing 757 costing about US$5.5 million, this is a significant and growing segment for the sector, he noted.
P&W, meanwhile, broke ground on a US$30 million facility that will form the centrepiece of its Global Service Partners maintenance, repair and overhaul (MRO) business in Singapore.
The first phase of the multi-building campus is expected to be completed by the third quarter of next year, with the rest coming on line over two-and-a-half years.
P&W has recently broadened the services it offers in Singapore to include high-value areas such as engineering research and development (R&D). Staff from P&W's Asian aerospace engineering business, Global Services Engineering-Asia, will be housed in the new facility.
The facility will become P&W's hub for engineering and technical work, senior vice-president and general manager Jim Keenan said. This will generate US$20-30 million of extra annual revenue from 2010 when the first phase becomes operational, rising to an extra US$50 million a year as the other phases kick in.
The 30 engineering specialists at its present Loyang facility will move to Seletar, where numbers will rise to 60-90.
'The development of an aerospace hub strategically located here will allow for the efficiency and logistics improvements necessary to meet the needs of P&W Global Service Partners' growing customer base in Asia,' Mr Keenan said.
Seletar Aerospace Park is a 300 ha development cluster for aerospace MRO, design and manufacturing, training and business/ general aviation. It offers synergy and economies of scale to major aerospace companies, with ST Aerospace, Rolls-Royce and P&W the first anchor tenants.
There are also plans to make Seletar Airport the region's premier business aviation hub.
The government has announced plans to extend the runway and introduce instrument landing systems to allow all-weather access.
2 Good Class Bungalows On Leedon Road Up For Sale
Source : The Business Times, February 22, 2008
A PAIR of recently completed Good Class Bungalows at 37 and 39 Leedon Road are being launched by their developer George Lim. His asking price is about $35 million for each bungalow. The plots' land areas are 22,000 square feet and 21,000 sq ft respectively.
Each five-bedroom, two-storey freehold house has a basement garage for up to five vehicles.
The exteriors are clad in natural sandstone, while inside there is AMX movie-on-demand hardware.
Mr Lim launched his maiden project in 2005 with three Good Class Bungalows built on a 50,000 sq ft site in the Belmont area.
A PAIR of recently completed Good Class Bungalows at 37 and 39 Leedon Road are being launched by their developer George Lim. His asking price is about $35 million for each bungalow. The plots' land areas are 22,000 square feet and 21,000 sq ft respectively.
Each five-bedroom, two-storey freehold house has a basement garage for up to five vehicles.
The exteriors are clad in natural sandstone, while inside there is AMX movie-on-demand hardware.
Mr Lim launched his maiden project in 2005 with three Good Class Bungalows built on a 50,000 sq ft site in the Belmont area.
Tanjong Pagar Hotel Site May Fetch $750 psf ppr
Source : The Business Times, February 22, 2008
CONTINUING its rollout of hotel sites amid the current shortage of hotel rooms, the Urban Redevelopment Authority yesterday made available for application a reserve-list site in the Tanjong Pagar area.
The 99-year leasehold site, at the corner of Gopeng Street and Peck Seah Street, can be developed into a 30-storey hotel with about 330 hotel rooms.
The site will only be launched for tender upon successful application by a developer with an undertaking to bid at a minimum price which is acceptable to the state.
CB Richard Ellis executive director Li Hiaw Ho estimates that the plot could be worth about $700-750 per square foot of potential gross floor area.
Around the middle of last year, URA sold nearby hotel sites at Tanjong Pagar Road for $573 psf per plot ratio and $562 psf ppr.
The planning authority also awarded a hotel plot at Upper Pickering Street at $805 psf ppr and another plot at New Market Street/Merchant Road for $762 psf ppr in October 2007.
The latest plot, with a 2,311.3 square metre land area, has an 8.4 plot ratio (ratio of maximum potential gross floor area to land area) and a 30-storey height limit.
'The plot will be ideal for a four-star business hotel serving the needs of businesses in the Central Business District,' Mr Li said.
URA said that the Tanjong Pagar area was a 'prominent gateway leading directly into the main financial and business areas of Shenton Way, Raffles Place and Marina Bay'.
'It is also home to several hotels which have been established to serve the business community and tourist visitors. These include business hotels like the Amara and M Hotel, as well as award-winning hotels like Berjaya Hotel and The Scarlet.'
The planning authority, which is due to release Master Plan 2008 later this year, also noted that 'the successful sale and on-going development of several new office, high-rise residential and hotel sites in the area will further enhance the vibrancy and activities of the Tanjong Pagar commercial district'.
CONTINUING its rollout of hotel sites amid the current shortage of hotel rooms, the Urban Redevelopment Authority yesterday made available for application a reserve-list site in the Tanjong Pagar area.
The 99-year leasehold site, at the corner of Gopeng Street and Peck Seah Street, can be developed into a 30-storey hotel with about 330 hotel rooms.
The site will only be launched for tender upon successful application by a developer with an undertaking to bid at a minimum price which is acceptable to the state.
CB Richard Ellis executive director Li Hiaw Ho estimates that the plot could be worth about $700-750 per square foot of potential gross floor area.
Around the middle of last year, URA sold nearby hotel sites at Tanjong Pagar Road for $573 psf per plot ratio and $562 psf ppr.
The planning authority also awarded a hotel plot at Upper Pickering Street at $805 psf ppr and another plot at New Market Street/Merchant Road for $762 psf ppr in October 2007.
The latest plot, with a 2,311.3 square metre land area, has an 8.4 plot ratio (ratio of maximum potential gross floor area to land area) and a 30-storey height limit.
'The plot will be ideal for a four-star business hotel serving the needs of businesses in the Central Business District,' Mr Li said.
URA said that the Tanjong Pagar area was a 'prominent gateway leading directly into the main financial and business areas of Shenton Way, Raffles Place and Marina Bay'.
'It is also home to several hotels which have been established to serve the business community and tourist visitors. These include business hotels like the Amara and M Hotel, as well as award-winning hotels like Berjaya Hotel and The Scarlet.'
The planning authority, which is due to release Master Plan 2008 later this year, also noted that 'the successful sale and on-going development of several new office, high-rise residential and hotel sites in the area will further enhance the vibrancy and activities of the Tanjong Pagar commercial district'.
Office Rents In Singapore On Upward Climb: Property Firms
Source : The Business Times, February 22, 2008
THE occupancy cost for office space in Singapore is now higher than in Hong Kong, according to a new report.
Data from property firm CB Richard Ellis (CBRE) show that total occupancy cost here hit US$10.42 per square foot per month (psf pm) at the end of 2007.
By comparison, total occupancy cost for Hong Kong was US$9.74 psf pm at the end of last year.
Total occupancy cost reflects base rents as well as other property-related expenses such as management fees and property tax, according to CBRE.
Prime office rents in Singapore rose 19.1 per cent in just the fourth quarter of 2007, CBRE's report said. For the entire year, office rents rose a staggering 92.3 per cent.
'Competition for pockets of vacant space in the central business district (CBD) remained intense, and several expansion transactions towards the end of the (fourth) quarter suggested that demand may be sustained,' CBRE said.
In response to the report, the Urban Redevelopment Authority (URA) pointed out that CBRE represents just one viewpoint.
A recent Cushman & Wakefield (C&W) report, for example, said that office occupancy cost for prime office space in Singapore was US$10.80 psf pm in end-2007, much lower than the US$19.90 psf pm in Hong Kong.
The discrepancy between the two sets of data was due to the fact that CBRE considers office space in Hong Kong's CBD as well as other areas outside the city centre when compiling office occupancy cost data for Hong Kong - while C&W only considers Hong Kong's CBD. Both firms look only at Singapore's CBD when calculating occupancy cost here.
Separately, property firm Savills - which said that office rents in Singapore are close to Hong Kong's at present - predicted that rents here could increase by another 15-20 per cent this year.
Office rents in Hong Kong, on the other hand, are expected to rise by a slower 5 per cent in 2008, said Simon Smith, Savills' head of research and consultancy. He expected rents in Singapore to overtake rents in Hong Kong sometime this year.
Mr Smith also said that luxury home prices in Singapore will climb 8-12 per cent this year, after jumping about 50 per cent in 2007.
THE occupancy cost for office space in Singapore is now higher than in Hong Kong, according to a new report.
Data from property firm CB Richard Ellis (CBRE) show that total occupancy cost here hit US$10.42 per square foot per month (psf pm) at the end of 2007.
By comparison, total occupancy cost for Hong Kong was US$9.74 psf pm at the end of last year.
Total occupancy cost reflects base rents as well as other property-related expenses such as management fees and property tax, according to CBRE.
Prime office rents in Singapore rose 19.1 per cent in just the fourth quarter of 2007, CBRE's report said. For the entire year, office rents rose a staggering 92.3 per cent.
'Competition for pockets of vacant space in the central business district (CBD) remained intense, and several expansion transactions towards the end of the (fourth) quarter suggested that demand may be sustained,' CBRE said.
In response to the report, the Urban Redevelopment Authority (URA) pointed out that CBRE represents just one viewpoint.
A recent Cushman & Wakefield (C&W) report, for example, said that office occupancy cost for prime office space in Singapore was US$10.80 psf pm in end-2007, much lower than the US$19.90 psf pm in Hong Kong.
The discrepancy between the two sets of data was due to the fact that CBRE considers office space in Hong Kong's CBD as well as other areas outside the city centre when compiling office occupancy cost data for Hong Kong - while C&W only considers Hong Kong's CBD. Both firms look only at Singapore's CBD when calculating occupancy cost here.
Separately, property firm Savills - which said that office rents in Singapore are close to Hong Kong's at present - predicted that rents here could increase by another 15-20 per cent this year.
Office rents in Hong Kong, on the other hand, are expected to rise by a slower 5 per cent in 2008, said Simon Smith, Savills' head of research and consultancy. He expected rents in Singapore to overtake rents in Hong Kong sometime this year.
Mr Smith also said that luxury home prices in Singapore will climb 8-12 per cent this year, after jumping about 50 per cent in 2007.
Quieter Property Market But Outlook Favourable In Long Run
Source : The Straits Times, Feb 22, 2008
THE real estate roller coaster that developers have ridden in recent years has taken a sharp turn, thanks to United States sub-prime woes, and left the industry wondering what is coming next.
'Six months ago, we were concerned about the market exuberance,' said Mr Simon Cheong, the president of the Real Estate Developers' Association of Singapore (Redas), yesterday. 'These coming six months, we will be wondering when the market will turn around.'
After an exceptional year of strong prices and sales, the sector has slipped into the doldrums, with buyers and sellers taking cover from the onslaught of a global economic uncertainty, America's sub-prime mortgage crisis, stock market turmoil and escalating building costs.
Mr Cheong told a Redas Chinese New Year lunch: 'Though Asia's economy has a strong buttress - China - the temporary effect of weak sentiment from sub-primes will affect buying for at least the first half of this year.'
Sellers are also lying low, with developers delaying launches and pushing back project completion dates amid the construction squeeze.
Building costs have climbed at an 'unprecedented rate', added Mr Cheong, who is also chairman and chief executive of SC Global Developments. 'What is clear is that developers are bearing the brunt of higher construction costs. Something's got to give eventually.'
Developers will have to factor in high construction costs when they replenish their land bank, he said.
However, in the longer run, the market outlook is favourable, considering the Singapore economy's sound fundamentals.
'Rental yields will eventually dictate and underpin what capital values will be for property,' said Mr Cheong. The expected slowdown in supply will support the rental market.
Minister of State for National Development Grace Fu told the media during the lunch that the market may be quiet, but prices are firm while demand for commercial property is still resilient.
Those sentiments were echoed by consultancy Savills Singapore, which expects the office sector to stay buoyant.
Deputy managing director Simon Smith told a press conference that average prime rents should match Hong Kong's by the second quarter and surpass them by year-end.
This is because Hong Kong will see a lot of new supply coming onstream this year while Singapore's supply will remain tight in the short term, he said.
But higher rents in Singapore may not be enough to push businesses to Hong Kong. 'Many clients we see switching between the cities tend to do so because of strategic reasons rather than cost reasons,' said Mr Smith.
THE real estate roller coaster that developers have ridden in recent years has taken a sharp turn, thanks to United States sub-prime woes, and left the industry wondering what is coming next.
'Six months ago, we were concerned about the market exuberance,' said Mr Simon Cheong, the president of the Real Estate Developers' Association of Singapore (Redas), yesterday. 'These coming six months, we will be wondering when the market will turn around.'
After an exceptional year of strong prices and sales, the sector has slipped into the doldrums, with buyers and sellers taking cover from the onslaught of a global economic uncertainty, America's sub-prime mortgage crisis, stock market turmoil and escalating building costs.
Mr Cheong told a Redas Chinese New Year lunch: 'Though Asia's economy has a strong buttress - China - the temporary effect of weak sentiment from sub-primes will affect buying for at least the first half of this year.'
Sellers are also lying low, with developers delaying launches and pushing back project completion dates amid the construction squeeze.
Building costs have climbed at an 'unprecedented rate', added Mr Cheong, who is also chairman and chief executive of SC Global Developments. 'What is clear is that developers are bearing the brunt of higher construction costs. Something's got to give eventually.'
Developers will have to factor in high construction costs when they replenish their land bank, he said.
However, in the longer run, the market outlook is favourable, considering the Singapore economy's sound fundamentals.
'Rental yields will eventually dictate and underpin what capital values will be for property,' said Mr Cheong. The expected slowdown in supply will support the rental market.
Minister of State for National Development Grace Fu told the media during the lunch that the market may be quiet, but prices are firm while demand for commercial property is still resilient.
Those sentiments were echoed by consultancy Savills Singapore, which expects the office sector to stay buoyant.
Deputy managing director Simon Smith told a press conference that average prime rents should match Hong Kong's by the second quarter and surpass them by year-end.
This is because Hong Kong will see a lot of new supply coming onstream this year while Singapore's supply will remain tight in the short term, he said.
But higher rents in Singapore may not be enough to push businesses to Hong Kong. 'Many clients we see switching between the cities tend to do so because of strategic reasons rather than cost reasons,' said Mr Smith.
Property Sector Braces For Tougher Times In 2008
Source : The Business Times, February 22, 2008
Players feel squeeze from more credit woes and soaring construction costs
THE property market in Singapore is set to face a challenging year ahead as it continues to take hits from the sub-prime crisis in the United States and rising construction costs, industry body Real Estate Developers' Association of Singapore (Redas) said.
'Unfortunately, the sub-prime woe continues to hog the headlines,' saidRedas president Simon Cheong, during Redas' annual Chinese New Year celebration yesterday. 'Six months' ago, we were concerned with the market exuberance. This coming six months, we are wondering when the market will turn around.'
Construction cost is also spiralling upwards at an unprecedented rate, Mr Cheong said.
The property market's expected slowdown comes on the back of an exceptionally good 2007. Last year, a record-breaking 14,800-plus residential units were sold, the office occupancy rate hit 93 per cent and the hotel sector saw a occupancy rate of 87 per cent.
But this year, with more write-downs for sub-prime exposure expected from major financial institutions - which could affect home prices and demand here - and high construction costs affecting margins, developers are bracing themselves for tougher times ahead.
'We are concerned that construction costs have gone up so sharply and squeezed (developers') profit margins so much that a small decline in the the final selling price will affect developers severely,' said CB Richard Ellis' chairman for Asia, Willy Shee. 'A small increase in construction cost and a small decline in selling price will put developers in a very difficult situation.'
Minister of State for National Development Grace Fu, who was guest-of-honour at Redas' event yesterday, similarly said that the property market's prospects are dependent on how the sub-prime crisis is going to affect sentiment in the region.
Mr Cheong believes that the market will 'get some traction back' in the second half of this year.
Interest rates in Singapore are at a record low, which will encourage home ownership, he said. And the influx of expatriates at all levels coming to Singapore - on the back of an anticipated office supply of 15 million sq ft over the next three to four years - will also provide a boost to the property market, Mr Cheong said.
'Removal of estate duty also helps,' said Chia Ngiang Hong, Redas' first vice-president and group general manager of City Developments. 'The super-rich will focus on Singapore again.'
Analysts, worried about developers' prospects for this year, are already starting to recommend that investors put their money into the more diversified property companies and/or switch to real estate investment trusts (Reits).
'In the current volatile market environment, we recommend stocks of listed property companies with strong balance sheets offering multiple-sector presence and geographical diversification,' said UOB Kay Hian analyst Vikrant Pandey. Citigroup analyst Wendy Koh said: 'In the light of the current uncertainties, we retain our preference for Reits over the developers.'
Players feel squeeze from more credit woes and soaring construction costs
THE property market in Singapore is set to face a challenging year ahead as it continues to take hits from the sub-prime crisis in the United States and rising construction costs, industry body Real Estate Developers' Association of Singapore (Redas) said.
'Unfortunately, the sub-prime woe continues to hog the headlines,' saidRedas president Simon Cheong, during Redas' annual Chinese New Year celebration yesterday. 'Six months' ago, we were concerned with the market exuberance. This coming six months, we are wondering when the market will turn around.'
Construction cost is also spiralling upwards at an unprecedented rate, Mr Cheong said.
The property market's expected slowdown comes on the back of an exceptionally good 2007. Last year, a record-breaking 14,800-plus residential units were sold, the office occupancy rate hit 93 per cent and the hotel sector saw a occupancy rate of 87 per cent.
But this year, with more write-downs for sub-prime exposure expected from major financial institutions - which could affect home prices and demand here - and high construction costs affecting margins, developers are bracing themselves for tougher times ahead.
'We are concerned that construction costs have gone up so sharply and squeezed (developers') profit margins so much that a small decline in the the final selling price will affect developers severely,' said CB Richard Ellis' chairman for Asia, Willy Shee. 'A small increase in construction cost and a small decline in selling price will put developers in a very difficult situation.'
Minister of State for National Development Grace Fu, who was guest-of-honour at Redas' event yesterday, similarly said that the property market's prospects are dependent on how the sub-prime crisis is going to affect sentiment in the region.
Mr Cheong believes that the market will 'get some traction back' in the second half of this year.
Interest rates in Singapore are at a record low, which will encourage home ownership, he said. And the influx of expatriates at all levels coming to Singapore - on the back of an anticipated office supply of 15 million sq ft over the next three to four years - will also provide a boost to the property market, Mr Cheong said.
'Removal of estate duty also helps,' said Chia Ngiang Hong, Redas' first vice-president and group general manager of City Developments. 'The super-rich will focus on Singapore again.'
Analysts, worried about developers' prospects for this year, are already starting to recommend that investors put their money into the more diversified property companies and/or switch to real estate investment trusts (Reits).
'In the current volatile market environment, we recommend stocks of listed property companies with strong balance sheets offering multiple-sector presence and geographical diversification,' said UOB Kay Hian analyst Vikrant Pandey. Citigroup analyst Wendy Koh said: 'In the light of the current uncertainties, we retain our preference for Reits over the developers.'
Maybank's Home Loan Promotion Creates A Buzz
Source : The Business Times, February 22, 2008
Other banks won't get into price war, says OCBC's chief executive
Maybank's promotional home loan package has apparently drawn massive interest from new home buyers and home owners looking to refinance.
But at least one bank here has come out to say that this is unlikely to spark a mortgage price war in Singapore.
Maybank told BT that since the launch on Tuesday till end of Wednesday, the bank had received more than 1,500 inquiries at its call centre and branches. 'We have received close to 200 applications just for one and a half days,' said Helen Neo, head, consumer banking, Maybank Singapore.
She added that there is an equal split of applications for refinancing and new purchases and most of the applications are for private property home loans.
However, she said the promotion is not likely to be extended.
The low rates apply to those taking a loan amount of $300,000 and above and for owner-occupied properties.
On Tuesday, the Qualifying Full Bank slashed its three-year fixed home loan rates from 3.58 per cent for all three years to 1.68 per cent for the first year, 2.68 per cent for the second and 3.38 per cent for the third year. Maybank's new first-year interest rate is about 40 per cent lower than similar packages being offered in the market.
'We expect this promotional package to bring in new home loan customers. With this very attractive package, we do expect to meet the target we set,' said Ms Neo.
In response to Maybank's mortgage rate cut - which he referred to as a 'fire sale' - David Conner, OCBC Bank's chief executive, said banks are unlikely to be dragged into undercutting each other on rates.
'We're not likely to see a big price war with the mortgage portfolio,' said Mr Conner at yesterday's OCBC results briefing. 'We should see pricing firming and not deteriorating.'
He noted that most big multinational banks are strapped for capital and that credit spreads are rapidly rising. 'We have to be more careful with our pricing,' he said, adding that Singapore still remains one of the cheapest places to get a mortgage.
He noted that Singapore's interest rates are low today because the strengthening of the Singapore dollar - designed to stave off inflationary pressure - has attracted liquidity into the market.
He said the strengthening of the currency should slow down in the second half of the year, and liquidity will ebb as people move to other foreign currencies. This will bring down interest rates.
He added: 'Banks do better if interest rates are in the 3, 4 or 5 per cent range.'
DBS Bank had earlier said it has 'no plans to adjust rates' for now, while United Overseas Bank and HSBC both said they would monitor the situation before making a decision.
Citibank and Standard Chartered shied away from saying if they will review rates, but pointed to their Sibor packages, which they say give customers control in repricing loan packages.
Meanwhile, banking industry insiders said that fundamentals of the property market are still there, and that even with talk of the industry demand softening there was no panic selling.
They added that valuations for home prices have not come down and that there is still buying activity among the middle markets.
Other banks won't get into price war, says OCBC's chief executive
Maybank's promotional home loan package has apparently drawn massive interest from new home buyers and home owners looking to refinance.
But at least one bank here has come out to say that this is unlikely to spark a mortgage price war in Singapore.Maybank told BT that since the launch on Tuesday till end of Wednesday, the bank had received more than 1,500 inquiries at its call centre and branches. 'We have received close to 200 applications just for one and a half days,' said Helen Neo, head, consumer banking, Maybank Singapore.
She added that there is an equal split of applications for refinancing and new purchases and most of the applications are for private property home loans.
However, she said the promotion is not likely to be extended.
The low rates apply to those taking a loan amount of $300,000 and above and for owner-occupied properties.
On Tuesday, the Qualifying Full Bank slashed its three-year fixed home loan rates from 3.58 per cent for all three years to 1.68 per cent for the first year, 2.68 per cent for the second and 3.38 per cent for the third year. Maybank's new first-year interest rate is about 40 per cent lower than similar packages being offered in the market.
'We expect this promotional package to bring in new home loan customers. With this very attractive package, we do expect to meet the target we set,' said Ms Neo.
In response to Maybank's mortgage rate cut - which he referred to as a 'fire sale' - David Conner, OCBC Bank's chief executive, said banks are unlikely to be dragged into undercutting each other on rates.
'We're not likely to see a big price war with the mortgage portfolio,' said Mr Conner at yesterday's OCBC results briefing. 'We should see pricing firming and not deteriorating.'
He noted that most big multinational banks are strapped for capital and that credit spreads are rapidly rising. 'We have to be more careful with our pricing,' he said, adding that Singapore still remains one of the cheapest places to get a mortgage.
He noted that Singapore's interest rates are low today because the strengthening of the Singapore dollar - designed to stave off inflationary pressure - has attracted liquidity into the market.
He said the strengthening of the currency should slow down in the second half of the year, and liquidity will ebb as people move to other foreign currencies. This will bring down interest rates.
He added: 'Banks do better if interest rates are in the 3, 4 or 5 per cent range.'
DBS Bank had earlier said it has 'no plans to adjust rates' for now, while United Overseas Bank and HSBC both said they would monitor the situation before making a decision.
Citibank and Standard Chartered shied away from saying if they will review rates, but pointed to their Sibor packages, which they say give customers control in repricing loan packages.
Meanwhile, banking industry insiders said that fundamentals of the property market are still there, and that even with talk of the industry demand softening there was no panic selling.
They added that valuations for home prices have not come down and that there is still buying activity among the middle markets.
Singapore's Olympic Dream Comes True
Source : The Business Times, February 22, 2008
It wins right to host YOG 2010; SMEs poised to ride branding boom
Shortly after 7pm yesterday, the Padang erupted.
The two-horse, Moscow-versus-Singapore race to host the very first Youth Olympic Games (YOG) in 2010 had just seen Singapore breast the tape first, and everyone - from the Prime Minister to the other VIPs present to the business community and the thousands of schoolchildren - let their emotions show.
'We dared to dream, we worked hard to pursue our dream despite the odds. Now that dream will become a reality,' said Prime Minister Lee Hsien Loong to the cheering crowds who had seen the announcement broadcast 'live' on a giant screen.
'It will be the first time that the Olympic flame will be in South-east Asia and in Singapore. We will be the focus of a new era for sporting development for South-east Asia and Singapore,' PM Lee added.
Small and medium-sized enterprises (SMEs), in particular, can stand to benefit from the hosting of the YOG.
Parliamentary Secretary for the Ministry of Community Development, Youth, and Sports, Teo Ser Luck, emphasised that the YOG would be a platform to help local companies, possibly through second-tier sponsorship.
'Olympics is a big brand name. The main sponsors of the Olympics are global brands. What I hope to do is to have the YOG to bring up the brand awareness of our local companies, especially the SMEs,' he said.
The win comes after seven months of stiff competition. The initial list of 11 cities was whittled down to two before Singapore pipped Moscow thanks to its top-notch infrastructure, strong governance and security.
The next step for Singapore is to set up an organising committee, which is expected to include people from both the government and private sector. Ng Ser Miang, the International Olympic Committee member from Singapore, is expected to chair the committee.
Elim Chew, president and founder of 77th Street, who has been rallying business associates to show their support, told BT that she had been confident that Singapore would win. 'We reflect what Olympism is about - youth, spirit and community. The whole nation played a part. In the last one month, the atmosphere really built up,' she said, adding that the economy would reap rewards. 'It is important to build up Singapore businesses as it goes back to the economy.'
In recent months, over 700 companies have come forward to back Singapore with whole-hearted support and raise awareness through banners, videos, websites and car decals.
The YOG, which will be held in August 2010, is expected to welcome some 5,000 athletes and officials and will offer contests in 26 different sports.
It wins right to host YOG 2010; SMEs poised to ride branding boom
Shortly after 7pm yesterday, the Padang erupted.
The two-horse, Moscow-versus-Singapore race to host the very first Youth Olympic Games (YOG) in 2010 had just seen Singapore breast the tape first, and everyone - from the Prime Minister to the other VIPs present to the business community and the thousands of schoolchildren - let their emotions show.
'We dared to dream, we worked hard to pursue our dream despite the odds. Now that dream will become a reality,' said Prime Minister Lee Hsien Loong to the cheering crowds who had seen the announcement broadcast 'live' on a giant screen.
'It will be the first time that the Olympic flame will be in South-east Asia and in Singapore. We will be the focus of a new era for sporting development for South-east Asia and Singapore,' PM Lee added.
Small and medium-sized enterprises (SMEs), in particular, can stand to benefit from the hosting of the YOG.
Parliamentary Secretary for the Ministry of Community Development, Youth, and Sports, Teo Ser Luck, emphasised that the YOG would be a platform to help local companies, possibly through second-tier sponsorship.
'Olympics is a big brand name. The main sponsors of the Olympics are global brands. What I hope to do is to have the YOG to bring up the brand awareness of our local companies, especially the SMEs,' he said.
The win comes after seven months of stiff competition. The initial list of 11 cities was whittled down to two before Singapore pipped Moscow thanks to its top-notch infrastructure, strong governance and security.
The next step for Singapore is to set up an organising committee, which is expected to include people from both the government and private sector. Ng Ser Miang, the International Olympic Committee member from Singapore, is expected to chair the committee.
Elim Chew, president and founder of 77th Street, who has been rallying business associates to show their support, told BT that she had been confident that Singapore would win. 'We reflect what Olympism is about - youth, spirit and community. The whole nation played a part. In the last one month, the atmosphere really built up,' she said, adding that the economy would reap rewards. 'It is important to build up Singapore businesses as it goes back to the economy.'
In recent months, over 700 companies have come forward to back Singapore with whole-hearted support and raise awareness through banners, videos, websites and car decals.
The YOG, which will be held in August 2010, is expected to welcome some 5,000 athletes and officials and will offer contests in 26 different sports.