Source : The Business Times, September 15, 2008
LONDON - Britain's main association of business leaders became the latest group on Monday to warn that the country was slipping into a recession, although it said the downturn should be short-lived.
In its latest economic forecast, the Confederation of British Industry (CBI) predicted a 'shallow recession' with the economy shrinking by 0.2 per cent between July and September and a further 0.1 per cent by the end of the year.
A recession is defined as two consecutive quarters of negative growth.
The outlook follows similar predictions by the European Commission and the Paris-based Organisation for Economic Cooperation and Development (OECD).
The CBI cut this year's growth forecast from 1.7 to 1.1 per cent and said unemployment would likely top two million next year.
It also downgraded the 2009 growth forecast by 1 per cent, predicting the British economy will grow just 0.3 per cent over the 12 months - the lowest rate since 1992.
'Over the past year our forecasts for economic growth have been shaved lower and lower as the UK economy continues to struggle with the twin impact of higher energy and commodity prices and the credit crunch,' said CBI director-general Richard Lambert.
He added: 'Having experienced a rapid loss of momentum in the economy over the first half of 2008, the UK may have entered a mild recession that will hopefully prove short-lived.
'This is not a return to the 1990s, when job cuts and a slump in demand were far more prolonged.' -- AFP
Monday, September 15, 2008
Market Turmoil, Ghosts Scare S'pore Home Buyers
Source : The Business Times, September 15, 2008
Private home sales in Singapore slumped 81 per cent in August from a year ago, to the lowest level since March as a combination of global financial turmoil and a traditionally unlucky month spooked buyers.
Sales of new residential projects, comprising both houses and apartments, fell to 320 units from 1,723 units sold in August last year, and sales were also down 64 per cent from the 901 units taken up in July 2008, government data showed on Monday.
The Hungry Ghost or Seventh Lunar month, falling in August this year, is widely deemed by the Chinese as an unlucky period for homebuying, although many Singaporeans have ignored the taboo in past years during property booms. 'We can blame the ghosts partly, but I think it's more that all this bad news about global banks is creating a real sense of anxiety among homebuyers,' said Colin Tan, Singapore-based head of research for property consultancy Chesterton International.
Singapore's financial services and export-dependent manufacturing sectors could be hit by global financial turmoil, with US investment bank Lehman Brothers filing for bankruptcy protection on Monday.
Worries over Singapore's economic outlook have ended a four-year housing boom in the republic, as price growth for private homes slowed sharply in the April-June period, rising just 0.2 per cent in the quarter.
But Mr Tan expected home prices to remain steady in the July-September quarter, as developers hold out for better offers in the hope that market conditions will improve.
Developers put up fewer new projects for sale in August, with just 194 units launched compared to 1,885 units a year ago.
Concerns about the health of Singapore's property sector has prompted analysts to slash share price targets for developers such as CapitaLand, Keppel Land and City Developments. -- REUTERS
Private home sales in Singapore slumped 81 per cent in August from a year ago, to the lowest level since March as a combination of global financial turmoil and a traditionally unlucky month spooked buyers.
Sales of new residential projects, comprising both houses and apartments, fell to 320 units from 1,723 units sold in August last year, and sales were also down 64 per cent from the 901 units taken up in July 2008, government data showed on Monday.
The Hungry Ghost or Seventh Lunar month, falling in August this year, is widely deemed by the Chinese as an unlucky period for homebuying, although many Singaporeans have ignored the taboo in past years during property booms. 'We can blame the ghosts partly, but I think it's more that all this bad news about global banks is creating a real sense of anxiety among homebuyers,' said Colin Tan, Singapore-based head of research for property consultancy Chesterton International.
Singapore's financial services and export-dependent manufacturing sectors could be hit by global financial turmoil, with US investment bank Lehman Brothers filing for bankruptcy protection on Monday.
Worries over Singapore's economic outlook have ended a four-year housing boom in the republic, as price growth for private homes slowed sharply in the April-June period, rising just 0.2 per cent in the quarter.
But Mr Tan expected home prices to remain steady in the July-September quarter, as developers hold out for better offers in the hope that market conditions will improve.
Developers put up fewer new projects for sale in August, with just 194 units launched compared to 1,885 units a year ago.
Concerns about the health of Singapore's property sector has prompted analysts to slash share price targets for developers such as CapitaLand, Keppel Land and City Developments. -- REUTERS
China, Vietnam Landbanks May Hit Developers
Source : The Business Times, September 15, 2008
AMID the doom and gloom in the local property market, concerns are also beginning to mount about Singapore developers' exposure to the China and Vietnam markets.
Recent news out of China's property market has been grim. Many Chinese developers are reportedly cutting selling prices as the sector feels the heat from previously-introduced government measures to cool the market, coupled with a slowing economy.
CIMB's Hong Kong/China property analyst Alice Chong, for one, believes that while price cuts are not widespread yet, anecdotal evidence suggests that transaction prices have fallen by about 10 per cent so far this year. Going into 2009, she expects another 5-10 per cent decline in prices as the sector enters a correction phase. Regions that she is particularly negative on are Shenzhen, Guangzhou, Beijing and Shanghai.
Vietnam, previously South-east Asia's property darling, could go the same route. Like in China, the government in Vietnam is fighting inflation with various regulatory measures to cool the economy. In line with this, there is a danger of prices heading south.
Singapore developers, who have sharply raised their exposures in the two countries over the past three years, could be hit. Investors here, who have been tracking falling property prices in Singapore closely, should also keep a wary eye on the property markets in China and Vietnam.
CapitaLand, for example, had some 30 per cent of total assets, worth $7.4 billion in all, in China, Macau and Hong Kong in the first half of 2008. The developer has more than 35,000 homes in the pipeline and stakes in over 20 million square feet of net lettable area in office and retail assets in China.
Analysts think that this exposure could prove to be a bugbear for the company in the near term.
Recent reports suggest that the fundamentals in the Chinese property sector are weakening. Construction costs have risen by around 10 per cent year-to-date. As inventory levels continue to rise, developers who deferred sales in the first half of 2008 are coming under pressure to move their units and cut prices.
Kim Eng Research, for one, recently marked down its average selling price (ASP) assumptions for China by 10-15 per cent, and downgraded CapitaLand's stock to a 'hold'. In the same vein, CIMB noted that a 10 per cent fall in residential selling prices will result in a 2 per cent fall in its revalued net asset value (RNAV) estimate for CapitaLand.
A weakening economy is also putting pressure on capital value estimates for CapitaLand's commercial and retail properties. 'Assuming the market values for all asset classes are scaled back by 10 per cent, we estimate that CapitaLand's RNAV will fall by around 3.5 per cent,' CIMB noted in a report.
In the same vein, Keppel Land is also similarly facing rising short-term operating risks in China and Vietnam.
About 17 per cent of KepLand's total assets were invested in China as at end-June 2008. The developer also revealed in July - in a bid to reassure investors about the situation in Vietnam - that some $360 million, or 6.5 per cent, of group's total assets as at the Q1 2008 - were in Vietnam, including office buildings and serviced apartments.
Another developer that is big in both China and Vietnam is Guocoland, which has more than 50 per cent of its assets overseas.
Vietnam is suffering from high inflation and a widening trade deficit, and there are fears of a dong devaluation. A liquidity crunch also means that smaller and non-reputable developers will be forced out of the market.
While Singaporean developers in China and Vietnam are neither small nor disreputable, they will be forced to cut prices if other developers do so.
Right now, none can pinpoint with any certainty where the markets in both countries are heading. But investors should bear in mind that, for several Singapore developers, the dangers could come from outside - even if the property market in Singapore stages some sort of recovery.
AMID the doom and gloom in the local property market, concerns are also beginning to mount about Singapore developers' exposure to the China and Vietnam markets.
Recent news out of China's property market has been grim. Many Chinese developers are reportedly cutting selling prices as the sector feels the heat from previously-introduced government measures to cool the market, coupled with a slowing economy.
CIMB's Hong Kong/China property analyst Alice Chong, for one, believes that while price cuts are not widespread yet, anecdotal evidence suggests that transaction prices have fallen by about 10 per cent so far this year. Going into 2009, she expects another 5-10 per cent decline in prices as the sector enters a correction phase. Regions that she is particularly negative on are Shenzhen, Guangzhou, Beijing and Shanghai.
Vietnam, previously South-east Asia's property darling, could go the same route. Like in China, the government in Vietnam is fighting inflation with various regulatory measures to cool the economy. In line with this, there is a danger of prices heading south.
Singapore developers, who have sharply raised their exposures in the two countries over the past three years, could be hit. Investors here, who have been tracking falling property prices in Singapore closely, should also keep a wary eye on the property markets in China and Vietnam.
CapitaLand, for example, had some 30 per cent of total assets, worth $7.4 billion in all, in China, Macau and Hong Kong in the first half of 2008. The developer has more than 35,000 homes in the pipeline and stakes in over 20 million square feet of net lettable area in office and retail assets in China.
Analysts think that this exposure could prove to be a bugbear for the company in the near term.
Recent reports suggest that the fundamentals in the Chinese property sector are weakening. Construction costs have risen by around 10 per cent year-to-date. As inventory levels continue to rise, developers who deferred sales in the first half of 2008 are coming under pressure to move their units and cut prices.
Kim Eng Research, for one, recently marked down its average selling price (ASP) assumptions for China by 10-15 per cent, and downgraded CapitaLand's stock to a 'hold'. In the same vein, CIMB noted that a 10 per cent fall in residential selling prices will result in a 2 per cent fall in its revalued net asset value (RNAV) estimate for CapitaLand.
A weakening economy is also putting pressure on capital value estimates for CapitaLand's commercial and retail properties. 'Assuming the market values for all asset classes are scaled back by 10 per cent, we estimate that CapitaLand's RNAV will fall by around 3.5 per cent,' CIMB noted in a report.
In the same vein, Keppel Land is also similarly facing rising short-term operating risks in China and Vietnam.
About 17 per cent of KepLand's total assets were invested in China as at end-June 2008. The developer also revealed in July - in a bid to reassure investors about the situation in Vietnam - that some $360 million, or 6.5 per cent, of group's total assets as at the Q1 2008 - were in Vietnam, including office buildings and serviced apartments.
Another developer that is big in both China and Vietnam is Guocoland, which has more than 50 per cent of its assets overseas.
Vietnam is suffering from high inflation and a widening trade deficit, and there are fears of a dong devaluation. A liquidity crunch also means that smaller and non-reputable developers will be forced out of the market.
While Singaporean developers in China and Vietnam are neither small nor disreputable, they will be forced to cut prices if other developers do so.
Right now, none can pinpoint with any certainty where the markets in both countries are heading. But investors should bear in mind that, for several Singapore developers, the dangers could come from outside - even if the property market in Singapore stages some sort of recovery.
Transient Tenants May Face Trouble From Next-Door
Source : The Straits Times, Sep 15, 2008
MATCHING short-term landlords with temporary tenants seems like a win-win situation all round.
MORE MONEY IN SHORT STAYS: 'In the last two years, the demand for short-term leases has increased 15 to 20 per cent, judging from the increase in our revenues from that sector.' - Mr Eric Cheng, a veteran property investor and the senior managing director of property development and lifestyle group ECG Group of Companies -- ST PHOTO: SAMUEL HE
But sometimes, there is a third party involved - the neighbour.
'Occasionally you have one or two nasty neighbours, nosy people who don't like short-term tenants,' said Mr Jonathan Ho.
In one case, he rented out an apartment at Spottiswoode Park to a medical tourist receiving treatment at the nearby Singapore General Hospital, on behalf of the home's owner who was in China at the time.
But just three days into the lease, a neighbour complained to the owner's wife, who was in Singapore, that there were foreigners living in the apartment.
'The owner's wife didn't know her husband was renting out short-term, so she shouted at me and wanted to chase out the tenants on the spot,' Mr Ho recalled.
'Just because the neighbours are nosy and put ideas into her head that the foreigners could be illegal.'
Mr Ho tried to clarify things but the owner's wife insisted that the tenants leave, so he had to cancel the lease.
But he said this is a rare case. 'Maybe because Spottiswoode Park is an older development, so most of the residents are used to their neighbours and don't like strangers.'
Indeed, most landlords say residents in the prime areas, where developments are heavily occupied by expats, are fine with short-term tenants as neighbours.
This is the case at Casuarina Cove in Tanjong Rhu, where a three-bedroom apartment is up for a six to 10 month rental while its new owners serve out their own lease elsewhere before moving in.
An expat housewife from Britain, who would only give her name as Mary, said that most of her neighbours at Casuarina Cove are expats with transient stays.
'People coming and going is all a way of life, isn't it?' she said. 'When they're here, the neighbours are all quite friendly.'
MATCHING short-term landlords with temporary tenants seems like a win-win situation all round.
MORE MONEY IN SHORT STAYS: 'In the last two years, the demand for short-term leases has increased 15 to 20 per cent, judging from the increase in our revenues from that sector.' - Mr Eric Cheng, a veteran property investor and the senior managing director of property development and lifestyle group ECG Group of Companies -- ST PHOTO: SAMUEL HEBut sometimes, there is a third party involved - the neighbour.
'Occasionally you have one or two nasty neighbours, nosy people who don't like short-term tenants,' said Mr Jonathan Ho.
In one case, he rented out an apartment at Spottiswoode Park to a medical tourist receiving treatment at the nearby Singapore General Hospital, on behalf of the home's owner who was in China at the time.
But just three days into the lease, a neighbour complained to the owner's wife, who was in Singapore, that there were foreigners living in the apartment.
'The owner's wife didn't know her husband was renting out short-term, so she shouted at me and wanted to chase out the tenants on the spot,' Mr Ho recalled.
'Just because the neighbours are nosy and put ideas into her head that the foreigners could be illegal.'
Mr Ho tried to clarify things but the owner's wife insisted that the tenants leave, so he had to cancel the lease.
But he said this is a rare case. 'Maybe because Spottiswoode Park is an older development, so most of the residents are used to their neighbours and don't like strangers.'
Indeed, most landlords say residents in the prime areas, where developments are heavily occupied by expats, are fine with short-term tenants as neighbours.
This is the case at Casuarina Cove in Tanjong Rhu, where a three-bedroom apartment is up for a six to 10 month rental while its new owners serve out their own lease elsewhere before moving in.
An expat housewife from Britain, who would only give her name as Mary, said that most of her neighbours at Casuarina Cove are expats with transient stays.
'People coming and going is all a way of life, isn't it?' she said. 'When they're here, the neighbours are all quite friendly.'
Short-Term Apartment Leases A Growing Trend
Source : The Straits Times, Sep 15, 2008
More expats, medical tourists and even locals seek interim homes; estates with collective sales delayed cater to demand
LIKE many property investors, Mr Jonathan Ho has a few apartments that he rents out for income.
But instead of the usual practice of leasing them out for a year or two at a stretch, he offers short-term stays of a few months, weeks, or even days - for about 20 per cent above the normal rate.
$4,400 A MONTH: rent for a two-bedroom apartment at Langston Ville in River Valley, for six months. This is 20 per cent higher than the average monthly rent in the development.
'Demand is good. More foreigners and Singaporeans are looking for short-term leases now,' said Mr Ho, a self-styled 'property agent-cum-owner' who also acts as a long-term leasing agent for other owners.
Once extremely rare, short-term leases of less than a year are gaining in popularity, thanks to higher demand from foreigners and a supply of temporary homes created by delayed collective sales.
While there are no official numbers, property agents say the market for temporary leases is perhaps 20 per cent bigger now than a few years ago.
Mr Eric Cheng, a veteran property investor and the senior managing director of property development and lifestyle group ECG Group of Companies, said he and his group own 11 apartments in central areas available for short-term leases ranging from three to six months.
$7,600 A MONTH: The minimum rent Far East Organisation is asking for month-long stays at a two-bedroom unit in Central Place, Hougang.
'In the last two years, the demand for short-term leases has increased 15 to 20 per cent, judging from the increase in our revenues from that sector,' he said.
This demand is coming from Singaporeans who are renovating their houses or are in between buying homes, as well as expats on short-term contracts and medical tourists who are here for treatment and need a place to stay for a few weeks.
At the same time, a new supply of interim rental homes has surfaced as a result of delayed collective sales. These estates, in limbo pending sale completions, could be largely empty for up to a year as their sellers move out to new homes.
Other landlords, like Mr Cheng, are capitalising on the demand for short-term leases to get higher rental income for their apartments.
This has helped spawn a specialised market of temporary apartment stays, with some property companies and agents now focusing more on this trade.
Just three years ago, temporary leases were 'unheard of', said Ms Maria Ali Koppe, a property agent with HSR Property Group, who now does a healthy trade in this market.
$3,800 A MONTH: rent at Devonshire Lodge near Somerset, for two-bedroom flats. Three-bedroom units go for $5,000 a month.
'People didn't want to rent their houses temporarily, they were scared the tenants might damage their furniture and houses,' she said. Those in need of a temporary lease turned instead to serviced residences or to renting a room within a residential apartment.
But serviced residences, a short-term stay staple, are now near full occupancy, causing rates to rise and prompting tenants to look for cheaper alternatives.
On average, short-term tenants pay 20 to 30 per cent more per month for a short-term lease than the going rate for a normal year-long stay.
But this is still much cheaper than serviced apartments, which cost anything from about $350 to $600 a night. Far East Organization offers month-long stays starting at $7,600 for a two-bedroom unit at Central Place in Hougang.
For Mr Ho's apartments in the prime districts, rents start at $90 a day or $600 a week. The properties in his arsenal include units in Kim Sia Court beside Lucky Plaza in Orchard Road, Spottiswoode Park in Outram and Parc Oasis in Jurong.
One of Mr Cheng's units, a two-bedroom apartment at Langston Ville in River Valley, will soon be rented out to a Dutch expat for six months at $4,400 a month - 20 per cent higher than the average monthly rent in the development.
'The tenant is used to a quieter neighbourhood but he wants to try living in the city area for six months before he decides where to stay more permanently,' Mr Cheng said. 'He doesn't mind paying more for the flexibility of a short-term lease.'
Another of ECG's units, at nearby Kim Yam Heights, is being rented to a Japanese company that renews the lease every three months as it brings in new expat employees here on short-term contracts.
The premiums that short-term tenants pay come with the benefits of immediate occupancy and fewer restrictions than a normal year-long contract, which requires tenants to return the homes to their landlords in their original condition, for instance.
Many short-term landlords also throw in frills such as cable TV, broadband Internet and coverage of utility bills.
The privacy of having a whole apartment to yourself particularly appeals to Thai expat Nang, 29, who is working on contract for a market research firm here.
'I looked at renting rooms at first, but if I can have a small apartment, that is better,' she said.
One unit she is considering is at Siglap Court, an old, rundown block of apartments in Siglap Road that has been entirely devoted to temporary rentals.
Property agents would not reveal the name of the development's owner, but said the estate's collective sale hit a snag and the owner has subdivided the units to lease out indefinitely for the future.
Tenants pay $1,500 to over $2,000 a month for units starting at about 500 sq ft. Most of the tenants are foreigners working in Singapore, agents said.
Other collective sale developments that have units available for stopgap leases include Horizon Towers in Leonie Hill, Oakswood Heights in Spottiswoode Park, Devonshire Lodge near Somerset, Killiney Apartments in Killiney Road and Minton Rise in Lorong Chuan.
At Devonshire Lodge, two-bedroom flats can be leased for $1,500 a week, or $3,800 a month. Three-bedroom units go for $5,000 a month. Tenants include Japanese, Russian and Saudi Arabian expats and medical tourists being treated at the nearby Mount Elizabeth Hospital, said an agent.
While most short-term tenants are foreigners, Singaporeans are also getting in on the action.
Ms Rachel Foo, a former air stewardess now looking for a new job, has leased an apartment at Avila Gardens in Pasir Ris for six months. Her rent: $2,000 a month, almost 20 per cent above the market rate of $1,700.
'The rent is higher but at least I keep my options open, so if I find a job somewhere in town I can always move,' she said. 'I also want to know if I can get along with the neighbours before I commit to a long-term lease.'
More expats, medical tourists and even locals seek interim homes; estates with collective sales delayed cater to demand
LIKE many property investors, Mr Jonathan Ho has a few apartments that he rents out for income.
But instead of the usual practice of leasing them out for a year or two at a stretch, he offers short-term stays of a few months, weeks, or even days - for about 20 per cent above the normal rate.
$4,400 A MONTH: rent for a two-bedroom apartment at Langston Ville in River Valley, for six months. This is 20 per cent higher than the average monthly rent in the development.'Demand is good. More foreigners and Singaporeans are looking for short-term leases now,' said Mr Ho, a self-styled 'property agent-cum-owner' who also acts as a long-term leasing agent for other owners.
Once extremely rare, short-term leases of less than a year are gaining in popularity, thanks to higher demand from foreigners and a supply of temporary homes created by delayed collective sales.
While there are no official numbers, property agents say the market for temporary leases is perhaps 20 per cent bigger now than a few years ago.
Mr Eric Cheng, a veteran property investor and the senior managing director of property development and lifestyle group ECG Group of Companies, said he and his group own 11 apartments in central areas available for short-term leases ranging from three to six months.
$7,600 A MONTH: The minimum rent Far East Organisation is asking for month-long stays at a two-bedroom unit in Central Place, Hougang.'In the last two years, the demand for short-term leases has increased 15 to 20 per cent, judging from the increase in our revenues from that sector,' he said.
This demand is coming from Singaporeans who are renovating their houses or are in between buying homes, as well as expats on short-term contracts and medical tourists who are here for treatment and need a place to stay for a few weeks.
At the same time, a new supply of interim rental homes has surfaced as a result of delayed collective sales. These estates, in limbo pending sale completions, could be largely empty for up to a year as their sellers move out to new homes.
Other landlords, like Mr Cheng, are capitalising on the demand for short-term leases to get higher rental income for their apartments.
This has helped spawn a specialised market of temporary apartment stays, with some property companies and agents now focusing more on this trade.
Just three years ago, temporary leases were 'unheard of', said Ms Maria Ali Koppe, a property agent with HSR Property Group, who now does a healthy trade in this market.
$3,800 A MONTH: rent at Devonshire Lodge near Somerset, for two-bedroom flats. Three-bedroom units go for $5,000 a month.'People didn't want to rent their houses temporarily, they were scared the tenants might damage their furniture and houses,' she said. Those in need of a temporary lease turned instead to serviced residences or to renting a room within a residential apartment.
But serviced residences, a short-term stay staple, are now near full occupancy, causing rates to rise and prompting tenants to look for cheaper alternatives.
On average, short-term tenants pay 20 to 30 per cent more per month for a short-term lease than the going rate for a normal year-long stay.
But this is still much cheaper than serviced apartments, which cost anything from about $350 to $600 a night. Far East Organization offers month-long stays starting at $7,600 for a two-bedroom unit at Central Place in Hougang.
For Mr Ho's apartments in the prime districts, rents start at $90 a day or $600 a week. The properties in his arsenal include units in Kim Sia Court beside Lucky Plaza in Orchard Road, Spottiswoode Park in Outram and Parc Oasis in Jurong.
One of Mr Cheng's units, a two-bedroom apartment at Langston Ville in River Valley, will soon be rented out to a Dutch expat for six months at $4,400 a month - 20 per cent higher than the average monthly rent in the development.
'The tenant is used to a quieter neighbourhood but he wants to try living in the city area for six months before he decides where to stay more permanently,' Mr Cheng said. 'He doesn't mind paying more for the flexibility of a short-term lease.'
Another of ECG's units, at nearby Kim Yam Heights, is being rented to a Japanese company that renews the lease every three months as it brings in new expat employees here on short-term contracts.
The premiums that short-term tenants pay come with the benefits of immediate occupancy and fewer restrictions than a normal year-long contract, which requires tenants to return the homes to their landlords in their original condition, for instance.
Many short-term landlords also throw in frills such as cable TV, broadband Internet and coverage of utility bills.
The privacy of having a whole apartment to yourself particularly appeals to Thai expat Nang, 29, who is working on contract for a market research firm here.
'I looked at renting rooms at first, but if I can have a small apartment, that is better,' she said.
One unit she is considering is at Siglap Court, an old, rundown block of apartments in Siglap Road that has been entirely devoted to temporary rentals.
Property agents would not reveal the name of the development's owner, but said the estate's collective sale hit a snag and the owner has subdivided the units to lease out indefinitely for the future.
Tenants pay $1,500 to over $2,000 a month for units starting at about 500 sq ft. Most of the tenants are foreigners working in Singapore, agents said.
Other collective sale developments that have units available for stopgap leases include Horizon Towers in Leonie Hill, Oakswood Heights in Spottiswoode Park, Devonshire Lodge near Somerset, Killiney Apartments in Killiney Road and Minton Rise in Lorong Chuan.
At Devonshire Lodge, two-bedroom flats can be leased for $1,500 a week, or $3,800 a month. Three-bedroom units go for $5,000 a month. Tenants include Japanese, Russian and Saudi Arabian expats and medical tourists being treated at the nearby Mount Elizabeth Hospital, said an agent.
While most short-term tenants are foreigners, Singaporeans are also getting in on the action.
Ms Rachel Foo, a former air stewardess now looking for a new job, has leased an apartment at Avila Gardens in Pasir Ris for six months. Her rent: $2,000 a month, almost 20 per cent above the market rate of $1,700.
'The rent is higher but at least I keep my options open, so if I find a job somewhere in town I can always move,' she said. 'I also want to know if I can get along with the neighbours before I commit to a long-term lease.'
No Easy Money In Asian Casinos
Source : The Business Times, September 15, 2008
Profit margin in Macau is just 10%, while in S'pore it's estimated to be nearly 40%
GIVEN the favourable tax regime here, Singapore's casinos in the upcoming integrated resorts look set to have higher profit margins, at least compared to Macau.
While the profit margin takes into account various operational costs, including junket commissions, the tax on gaming revenue is a big factor, and in Macau operators pay 35 per cent of gross gaming revenue in taxes.
In Singapore, the gaming tax rate will be 12 per cent (plus GST) for VIP play and 23 per cent (plus GST) for non-VIP play.
At the 13th Annual Asian Casinos Executive Summit 2008, which included industry players from Caesars Entertainment and Genting International, it also emerged that the profit margin for gaming operations in Macau work out to be about 10 per cent. In Singapore, it is estimated to be closer to 40 per cent.
Of course, taxes only matter to the extent that there is revenue to be taxed.
Speaking at the summit, Robert Stocker, president of the International Master of Gaming Law (US), said that generally, gaming tax needs to be below 20 per cent if the operators are also expected to provide amenities like entertainment, retail and F&B, and still remain feasible.
In a Citi gaming report, Anil Daswani said that Macau gaming revenues have plateaued and forecast a 20 per cent drop for September, down from HK$9.2 billion (S$1.7 billion) in August.
While visa restrictions from China were cited as one reason for this, cut-throat junket commissions and easy credit lines are creating what Mr Daswani calls an environment of 'irrational competition'.
In this environment, he also noted that some Macau developers including eSun have failed to secure funding for projects.
CapitaLand has a 20 per cent stake in the eSun project, Macao Studio City. A spokesman said: 'Currently, the progress of the Macao Studio City project is dependent on when the site will be re-gazetted and its use extended to allow for additional hotel rooms and other entertainment activities. The pace of securing project financing will also correspond with this approval. At the same time, the current environment has also become more challenging due to the global credit crunch.'
With the Chinese government expected to curb casino development in Macau, other countries are ramping up efforts to attract investors.
Singapore may be ahead of the game here but even in small gaming jurisdictions like Cambodia, where there are already 28 casino hotels, the government is looking to build bigger and better facilities.
Also speaking at the casino summit, Secretary of State for the Cambodian Ministry of Economy and Finance, Chea Peng Chheang, said it was now hoping to build 'destination casinos'.
Casinos are only open to foreigners in Cambodia but the market is not heavily regulated. This is largely because, apart from Naga Corp's casino in Phnom Penh, casinos are located in border towns like Cam-Thai and Cam-Viet to stimulate the economies there.
Casinos are also imminent in Japan but this is more because the Japanese have a yen for gambling. Pachinko and Pachislo machines there generate more than US$10 billion in revenue every year.
Japan has just moved one step closer to legalising casinos.
Toru Mihara, adviser to the Casino Study Group of the Japanese Liberal Democratic Party, said that one of the main stumbling blocks - the lack of bipartisan support - had been recently resolved with a bipartisan group formed to study gaming issues.
He also revealed that 16 congressmen had travelled to Macau and Singapore recently for this purpose. 'We are now discussing not when casinos will be allowed, but how,' he said.
Political will could make all the difference. In India, for instance, where slot machines were legalised only in Goa in 1993, Sunder Advani, chairman and managing director of Advani Hotels and Resorts, says it is very unlikely that the government there would allow resort-style casinos anytime soon. 'There is too much resistance from anti-gambling bodies.'
For now, Mr Advani owns the only 'full-fledged' casino in India and that is located on a ship off the Goa coast. Five more off-shore licences are still pending.
Some investors are still gung-ho on the industry, though.
Canada's Asian Coast Development (ACD), which counts US-based Harbinger Capital as a partner, has already got US$1.5 billion funding to build a 2,300-room casino resort in Vietnam's Bang Ria-Vung Tau Province called the Ho Tram Strip.
The casino will have 90 gaming tables and 2,000 slot machines and the resort will have a golf course designed by Greg Norman.
Vietnam already has two casinos but entry is restricted to foreigners. ACD chief executive David Subotic is, however, optimistic that this will change. ACD's revenue model includes local gamers.
ACD is also eyeing other Asian markets. He said: 'Ho Tram Strip is a showpiece for Japan and Taiwan, to show the governments there that our model is the most successful.'
Mr Subotic concedes that competition will be intense, and if credit markets remain persistently bearish, funding will be challenging.
But he added: 'If you build something of substance in this region, we believe people will be attracted.'
Profit margin in Macau is just 10%, while in S'pore it's estimated to be nearly 40%
GIVEN the favourable tax regime here, Singapore's casinos in the upcoming integrated resorts look set to have higher profit margins, at least compared to Macau.
While the profit margin takes into account various operational costs, including junket commissions, the tax on gaming revenue is a big factor, and in Macau operators pay 35 per cent of gross gaming revenue in taxes.
In Singapore, the gaming tax rate will be 12 per cent (plus GST) for VIP play and 23 per cent (plus GST) for non-VIP play.At the 13th Annual Asian Casinos Executive Summit 2008, which included industry players from Caesars Entertainment and Genting International, it also emerged that the profit margin for gaming operations in Macau work out to be about 10 per cent. In Singapore, it is estimated to be closer to 40 per cent.
Of course, taxes only matter to the extent that there is revenue to be taxed.
Speaking at the summit, Robert Stocker, president of the International Master of Gaming Law (US), said that generally, gaming tax needs to be below 20 per cent if the operators are also expected to provide amenities like entertainment, retail and F&B, and still remain feasible.
In a Citi gaming report, Anil Daswani said that Macau gaming revenues have plateaued and forecast a 20 per cent drop for September, down from HK$9.2 billion (S$1.7 billion) in August.
While visa restrictions from China were cited as one reason for this, cut-throat junket commissions and easy credit lines are creating what Mr Daswani calls an environment of 'irrational competition'.
In this environment, he also noted that some Macau developers including eSun have failed to secure funding for projects.
CapitaLand has a 20 per cent stake in the eSun project, Macao Studio City. A spokesman said: 'Currently, the progress of the Macao Studio City project is dependent on when the site will be re-gazetted and its use extended to allow for additional hotel rooms and other entertainment activities. The pace of securing project financing will also correspond with this approval. At the same time, the current environment has also become more challenging due to the global credit crunch.'
With the Chinese government expected to curb casino development in Macau, other countries are ramping up efforts to attract investors.
Singapore may be ahead of the game here but even in small gaming jurisdictions like Cambodia, where there are already 28 casino hotels, the government is looking to build bigger and better facilities.
Also speaking at the casino summit, Secretary of State for the Cambodian Ministry of Economy and Finance, Chea Peng Chheang, said it was now hoping to build 'destination casinos'.
Casinos are only open to foreigners in Cambodia but the market is not heavily regulated. This is largely because, apart from Naga Corp's casino in Phnom Penh, casinos are located in border towns like Cam-Thai and Cam-Viet to stimulate the economies there.
Casinos are also imminent in Japan but this is more because the Japanese have a yen for gambling. Pachinko and Pachislo machines there generate more than US$10 billion in revenue every year.
Japan has just moved one step closer to legalising casinos.
Toru Mihara, adviser to the Casino Study Group of the Japanese Liberal Democratic Party, said that one of the main stumbling blocks - the lack of bipartisan support - had been recently resolved with a bipartisan group formed to study gaming issues.
He also revealed that 16 congressmen had travelled to Macau and Singapore recently for this purpose. 'We are now discussing not when casinos will be allowed, but how,' he said.
Political will could make all the difference. In India, for instance, where slot machines were legalised only in Goa in 1993, Sunder Advani, chairman and managing director of Advani Hotels and Resorts, says it is very unlikely that the government there would allow resort-style casinos anytime soon. 'There is too much resistance from anti-gambling bodies.'
For now, Mr Advani owns the only 'full-fledged' casino in India and that is located on a ship off the Goa coast. Five more off-shore licences are still pending.
Some investors are still gung-ho on the industry, though.
Canada's Asian Coast Development (ACD), which counts US-based Harbinger Capital as a partner, has already got US$1.5 billion funding to build a 2,300-room casino resort in Vietnam's Bang Ria-Vung Tau Province called the Ho Tram Strip.
The casino will have 90 gaming tables and 2,000 slot machines and the resort will have a golf course designed by Greg Norman.
Vietnam already has two casinos but entry is restricted to foreigners. ACD chief executive David Subotic is, however, optimistic that this will change. ACD's revenue model includes local gamers.
ACD is also eyeing other Asian markets. He said: 'Ho Tram Strip is a showpiece for Japan and Taiwan, to show the governments there that our model is the most successful.'
Mr Subotic concedes that competition will be intense, and if credit markets remain persistently bearish, funding will be challenging.
But he added: 'If you build something of substance in this region, we believe people will be attracted.'
'Shallow Recession' For UK
Source : AFP, Mon, Sep 15, 2008
LONDON - BRITAIN'S main association of business leaders became the latest group on Monday to warn that the country was slipping into a recession, although it said the downturn should be short-lived.
In its latest economic forecast, the Confederation of British Industry (CBI) predicted a 'shallow recession' with the economy shrinking by 0.2 per cent between July and September and a further 0.1 per cent by the end of the year.
A recession is defined as two consecutive quarters of negative growth.
The outlook follows similar predictions by the European Commission and the Paris-based Organisation for Economic Cooperation and Development (OECD).
The CBI cut this year's growth forecast from 1.7 to 1.1 per cent and said unemployment would likely top two million next year.
It also downgraded the 2009 growth forecast by one per cent, predicting the British economy will grow just 0.3 per cent over the 12 months - the lowest rate since 1992.
'Over the past year, our forecasts for economic growth have been shaved lower and lower as the UK economy continues to struggle with the twin impact of higher energy and commodity prices and the credit crunch,' said CBI director-general Richard Lambert.
He added, 'Having experienced a rapid loss of momentum in the economy over the first half of 2008, the UK may have entered a mild recession that will hopefully prove short-lived.'
'This is not a return to the 1990s, when job cuts and a slump in demand were far more prolonged.'
LONDON - BRITAIN'S main association of business leaders became the latest group on Monday to warn that the country was slipping into a recession, although it said the downturn should be short-lived.
In its latest economic forecast, the Confederation of British Industry (CBI) predicted a 'shallow recession' with the economy shrinking by 0.2 per cent between July and September and a further 0.1 per cent by the end of the year.
A recession is defined as two consecutive quarters of negative growth.
The outlook follows similar predictions by the European Commission and the Paris-based Organisation for Economic Cooperation and Development (OECD).
The CBI cut this year's growth forecast from 1.7 to 1.1 per cent and said unemployment would likely top two million next year.
It also downgraded the 2009 growth forecast by one per cent, predicting the British economy will grow just 0.3 per cent over the 12 months - the lowest rate since 1992.
'Over the past year, our forecasts for economic growth have been shaved lower and lower as the UK economy continues to struggle with the twin impact of higher energy and commodity prices and the credit crunch,' said CBI director-general Richard Lambert.
He added, 'Having experienced a rapid loss of momentum in the economy over the first half of 2008, the UK may have entered a mild recession that will hopefully prove short-lived.'
'This is not a return to the 1990s, when job cuts and a slump in demand were far more prolonged.'
Sharp Fall In Home Sales
Source : The Straits Times, Sep 15, 2008
Only 320 units sold, compared to 897 in July.
SALES of new private homes took a big hit in August month as the period coincided with the Chinese Hungry Ghost month, which is considered inauspicious for making property purchases.
Developers sold only 320 units last month, about a third of the 897 units they sold in July.
This was partly because they also held back on launches, releasing only 194 new homes for sale, a fraction of the 1,322 homes launched in July.
Best-selling projects in the month included boutique condominium Urban Lofts in Rangoon Road, which sold all 46 units at a median price of $1,033 per sq ft (psf), Beacon Heights in St Michael's Road, which sold 34 units at a median $917 psf; and mass market development Livia in Pasir Ris, where 32 units were sold at a median $659 psf.
High-end developments also put on a better showing last month. Nassim Park Residences in prestigious Nassim Road sold another eight units at a median price of $3,349 psf, while SC Global's industrial-chic Martin No. 38 in Martin Road had 29 units sold at a median $1,970 psf.
Only 320 units sold, compared to 897 in July.
SALES of new private homes took a big hit in August month as the period coincided with the Chinese Hungry Ghost month, which is considered inauspicious for making property purchases.
Developers sold only 320 units last month, about a third of the 897 units they sold in July.
This was partly because they also held back on launches, releasing only 194 new homes for sale, a fraction of the 1,322 homes launched in July.
Best-selling projects in the month included boutique condominium Urban Lofts in Rangoon Road, which sold all 46 units at a median price of $1,033 per sq ft (psf), Beacon Heights in St Michael's Road, which sold 34 units at a median $917 psf; and mass market development Livia in Pasir Ris, where 32 units were sold at a median $659 psf.
High-end developments also put on a better showing last month. Nassim Park Residences in prestigious Nassim Road sold another eight units at a median price of $3,349 psf, while SC Global's industrial-chic Martin No. 38 in Martin Road had 29 units sold at a median $1,970 psf.
中国楼市走向现房时代
Source : 《联合早报》September 15, 2008
（成都综合讯）中国房地产市场逆转，期房预售风光不再，因发展商持货不卖，等待高价，造成滞销期房变现，楼市因此走向现房时代。
据《华西都市报》报道，“金九银十”！在无数人的眼里，9月从来是收获的季节。
当时，日前媒体选取成都最具代表性的区域——天府大道沿线，进行实地采访，据不完全统计，从三环路到终点广场，天府大道沿线两侧共有32个在售楼盘，其中23个楼盘都在卖准现房或现房，其余只有9个楼盘完全在卖期房。
这么多楼盘在卖准现房或现房，表面上看，是楼盘滞销所致，究其深层次原因，则是发展商涨价过高使然。
“房贷新政”影响
自2004年初以来，各地房价连连看涨，尤其是2005年—2007年中，房价更是飞涨，短短两年时间，不少地方的房价就翻了番，在涨价的同时，不少发展商还持货惜售，以期获得更大的销售收益。许多发展商没有料到的是，去年9月27日，央行发布“房贷新政”，影响如此巨大，仿佛一夜之间，楼市行情就发生了逆转——投资者离市，自住者观望，购房需求锐减，楼市陷入滞销状态，许多期房楼盘都卖成了现房或准现房。
所谓“期房”，就是指没有建成的房屋，期房预售就是发售“楼花”。对于广大购房者而言，购买期房意味着一定的风险，并导致买卖双方的“交房纠纷”不断。
期房销售模式在各个城市出现后，社会各界的质疑就从来没有停止过，但在楼市暴涨的时期，预售期房仍在广泛的争议中大行其道。
然而，去年“9.27房贷新政”出台，期房预售制度似乎风光不再。去年10月1日（中国国庆日）前，央行与银监会要求“只能对主体结构已封顶的住房发放抵押贷款”，就是在促使发展商把项目建成准现房发售。
（成都综合讯）中国房地产市场逆转，期房预售风光不再，因发展商持货不卖，等待高价，造成滞销期房变现，楼市因此走向现房时代。
据《华西都市报》报道，“金九银十”！在无数人的眼里，9月从来是收获的季节。
当时，日前媒体选取成都最具代表性的区域——天府大道沿线，进行实地采访，据不完全统计，从三环路到终点广场，天府大道沿线两侧共有32个在售楼盘，其中23个楼盘都在卖准现房或现房，其余只有9个楼盘完全在卖期房。
这么多楼盘在卖准现房或现房，表面上看，是楼盘滞销所致，究其深层次原因，则是发展商涨价过高使然。
“房贷新政”影响
自2004年初以来，各地房价连连看涨，尤其是2005年—2007年中，房价更是飞涨，短短两年时间，不少地方的房价就翻了番，在涨价的同时，不少发展商还持货惜售，以期获得更大的销售收益。许多发展商没有料到的是，去年9月27日，央行发布“房贷新政”，影响如此巨大，仿佛一夜之间，楼市行情就发生了逆转——投资者离市，自住者观望，购房需求锐减，楼市陷入滞销状态，许多期房楼盘都卖成了现房或准现房。
所谓“期房”，就是指没有建成的房屋，期房预售就是发售“楼花”。对于广大购房者而言，购买期房意味着一定的风险，并导致买卖双方的“交房纠纷”不断。
期房销售模式在各个城市出现后，社会各界的质疑就从来没有停止过，但在楼市暴涨的时期，预售期房仍在广泛的争议中大行其道。
然而，去年“9.27房贷新政”出台，期房预售制度似乎风光不再。去年10月1日（中国国庆日）前，央行与银监会要求“只能对主体结构已封顶的住房发放抵押贷款”，就是在促使发展商把项目建成准现房发售。