Source : TODAY, Jun 25, 2009
Consider this: Rentals are sliding while residential property sales continue to scale new heights in the current troubled times. With almost half of recent buyers being potential investors with private addresses, could these people be punting on a rental recovery?
If so, they may be staring at a wait of several years for the uptick.
"I don't expect any rental recovery for the rest of this year," said PropNex chief executive Mohamed Ismail.
ERA Asia Pacific associate director Eugene Lim concurred. "Tenant demand has nothing to do with property prices, so even though sales have gone up, the rental market is still challenging," he said.
Some analysts are even projecting that a rental recovery will not kick in until three years later.
According to the Urban Redevelopment Authority, rentals slid 8.5 per cent in the first quarter of this year - down from 5.3 per cent in the fourth quarter of last year - as the double whammy of a weak economy and new supply hit the market.
Mr Mohamed expects second-quarter rental rates to be even more dismal than those of the first quarter. After all, rentals went up 40 per cent in the two-and-a-half years since 2006 as the property market boomed, he noted.
Still, residential property buyers continue to pile in, shrugging off predictions that rentals would continue sliding for the rest of the year. Perhaps they are not even interested in rental yields.
Said Cushman and Wakefield Singapore's residential head Connie Looi: "Buyers are rushing in to buy because there has been a downward adjustment in prices. It's not so much because of rental yields, which is about 3.5 per cent on average. It's more for capital appreciation down the road.
Mr Mohamed cautioned: "Even if you buy property from an investment angle now, it's very hard to predict what the market will be in three years".
Some market watchers, however, are bullish on the rental market. UBS Investment Research analysts said in a report dated June 18 that they expected rents to "stay flat for the rest of the year and potentially rise 2 to 15 per cent in 2010". They calculated that prime rents had fallen 12 per cent in the year to date.
So who should invest now? "You need to have a greater appetite for risk and greater holding power to go in now - these are investors with mid- and long-term views, about five years and beyond," said Mr Mohamed.
Friday, June 26, 2009
URA Tender For Hotel Site Coming Up
Source : The Business Times, June 26, 2009
THE Urban Redevelopment Authority (URA) will launch a public tender for a hotel site at New Bridge Road in two weeks' time, it said yesterday.
The 0.45ha site was made available for sale through the government's reserve list system in April 2007. Under the reserve list system, the government will put up a site for public tender only if it receives an application from a developer who commits to bid for the site at or above the minimum price which is acceptable to the government.
URA said that it has received an application from a developer who has committed to bid at a price of not less than $43.9 million for the land parcel, which triggers the public tender.
Analysts said that interest seems to be returning to small development sites with good attributes.
Earlier this month, a government tender for a small hotel site on Short Street closed with a whopping 14 valid bids received. The number of bids - 15 in all, including one bid judged invalid because it was below the minimum bid price - is one of the highest received for a Government Land Sales tender.
The New Bridge Road site, which can house a boutique hotel development with about 200 rooms, is also thought to be attractive as it is very close to Outram Park MRT Station and should receive several bids, analysts said. It has a maximum permissible gross floor area of 168,853 sq ft.
THE Urban Redevelopment Authority (URA) will launch a public tender for a hotel site at New Bridge Road in two weeks' time, it said yesterday.
The 0.45ha site was made available for sale through the government's reserve list system in April 2007. Under the reserve list system, the government will put up a site for public tender only if it receives an application from a developer who commits to bid for the site at or above the minimum price which is acceptable to the government.
URA said that it has received an application from a developer who has committed to bid at a price of not less than $43.9 million for the land parcel, which triggers the public tender.
Analysts said that interest seems to be returning to small development sites with good attributes.
Earlier this month, a government tender for a small hotel site on Short Street closed with a whopping 14 valid bids received. The number of bids - 15 in all, including one bid judged invalid because it was below the minimum bid price - is one of the highest received for a Government Land Sales tender.
The New Bridge Road site, which can house a boutique hotel development with about 200 rooms, is also thought to be attractive as it is very close to Outram Park MRT Station and should receive several bids, analysts said. It has a maximum permissible gross floor area of 168,853 sq ft.
60% Of IR Will Be Ready
Source : The Straits Times, June 26, 2009
Casino and theme park to open in first quarter; fewer visitors expected due to tough economy
THE Sentosa integrated resort (IR) is all set to throw open its doors in the first quarter of next year - but visitors will not get to see the finished product.
Construction of the 49ha integrated resort on Sentosa is ongoing. When it opens early next year, the casino, the university Studios theme park, the theatre, four hotels as well as the retail and dining area are expected to be ready, but not other facilities such as the oceanarium. -- ST PHOTOS: JOYCE FANG
When the resort opens, just 60 per cent of it will be ready: four hotels, the casino, the Universal Studios theme park, the theatre and the retail and dining area.
Construction of the other attractions at the 49ha resort - including the world's largest oceanarium, a marine museum and two more hotels - will begin next year and is slated for completion by 2012.
An ariel view of the 49ha Resorts World at Sentosa. The resort, which opens next year, is now expected to attract 12 million visitors in the first year, down from the 15 million forecast previously.
Giving an update on the progress of the IR yesterday, Resorts World at Sentosa (RWS) executive vice-president of projects Michael Chin said some 80 per cent of construction for the first phase of the resort has been completed.
What remain to be done are exterior works and outfitting the rides for the theme park.
This should be completed by August.
Work has begun on the world's tallest duelling coaster ride, the 42.5m-high Battlestar Galactica Duelling Coaster. The red track offers a tamer ride while the blue track is for the more adventurous.
After that, the resort will be testing the rides and other amenities, and getting staff up to speed on operations.
Asked about prices for the rides, the resort's head of communications Krist Boo declined to give details. But she said that charges would be kept 'affordable' and that they would be competitive when compared with other theme parks.
The Waterworld Stunt Show amphitheatre is set to be the biggest of its kind in the world. It will be able to seat up to 3,500 spectators. The special-effects show, a big hit at the Orlando and Osaka theme parks, retells the story of the movie Waterworld and features men on jet skies, men set on fire and even a small sea plane landing in the arena.
She added that prices would be comparable and likely cheaper, dollar-for-dollar, than those at Universal Studios' other parks in Orlando and Osaka, where day passes go for US$70 (S$100) and 6,000 yen (S$90), respectively.
Ms Boo acknowledged that there are some clouds on the horizon for the IR.
Because of the tough economic times, the resort would have to slash its visitor forecast for the first year from 15 million to 12 million, she said.
Read the full story in Friday's edition of The Straits Times.
Casino and theme park to open in first quarter; fewer visitors expected due to tough economy
THE Sentosa integrated resort (IR) is all set to throw open its doors in the first quarter of next year - but visitors will not get to see the finished product.
Construction of the 49ha integrated resort on Sentosa is ongoing. When it opens early next year, the casino, the university Studios theme park, the theatre, four hotels as well as the retail and dining area are expected to be ready, but not other facilities such as the oceanarium. -- ST PHOTOS: JOYCE FANGWhen the resort opens, just 60 per cent of it will be ready: four hotels, the casino, the Universal Studios theme park, the theatre and the retail and dining area.
Construction of the other attractions at the 49ha resort - including the world's largest oceanarium, a marine museum and two more hotels - will begin next year and is slated for completion by 2012.
An ariel view of the 49ha Resorts World at Sentosa. The resort, which opens next year, is now expected to attract 12 million visitors in the first year, down from the 15 million forecast previously. Giving an update on the progress of the IR yesterday, Resorts World at Sentosa (RWS) executive vice-president of projects Michael Chin said some 80 per cent of construction for the first phase of the resort has been completed.
What remain to be done are exterior works and outfitting the rides for the theme park.
This should be completed by August.
Work has begun on the world's tallest duelling coaster ride, the 42.5m-high Battlestar Galactica Duelling Coaster. The red track offers a tamer ride while the blue track is for the more adventurous.After that, the resort will be testing the rides and other amenities, and getting staff up to speed on operations.
Asked about prices for the rides, the resort's head of communications Krist Boo declined to give details. But she said that charges would be kept 'affordable' and that they would be competitive when compared with other theme parks.
The Waterworld Stunt Show amphitheatre is set to be the biggest of its kind in the world. It will be able to seat up to 3,500 spectators. The special-effects show, a big hit at the Orlando and Osaka theme parks, retells the story of the movie Waterworld and features men on jet skies, men set on fire and even a small sea plane landing in the arena.She added that prices would be comparable and likely cheaper, dollar-for-dollar, than those at Universal Studios' other parks in Orlando and Osaka, where day passes go for US$70 (S$100) and 6,000 yen (S$90), respectively.
Ms Boo acknowledged that there are some clouds on the horizon for the IR.
Because of the tough economic times, the resort would have to slash its visitor forecast for the first year from 15 million to 12 million, she said.
Read the full story in Friday's edition of The Straits Times.
私人公寓将有“创意水景”
Source : 《联合早报》June 26, 2009
为让新加坡的每一个角落都与大自然融为一体，公用事业局开始把“活跃、美丽、干净”水源计划的触角伸向私人公寓的发展商，希望他们也能在项目中融入美化景观和净化雨水的设计概念。
近年来有越来越多私人公寓项目，特别是建在河流或水道旁的项目发展商在初步设计时，就已经把上述概念考虑在内。虽然这意味着增加造价，但发展商认为现代人越来越重视居住环境，所以这些公寓的售价也会被拉高。
环境及水源部高级政务次长许连碹博士昨天为“活跃、美丽、干净”水源计划设计指导原则举行推介仪式。
位于武吉知马路的私人公寓优景苑，有多面楼墙设有植物从屋顶垂下的绿墙设计，有雨水回收功能。（国浩置地提供）
她在致词时说，有关指导原则的目的是要鼓励和引导发展商和业界人士规划、设计出有创意的水景，并将之融入发展项目中。她以位于武吉知马路的私人公寓优景苑为例，说明一些发展商已开始在设计中加入雨水回收系统和景观美化设计。
优景苑有多面楼墙设有植物从顶楼垂下成绿墙的设计，能在下雨时回收雨水，经芦苇种植床过滤后用于灌溉优景苑的园内植物。发展商国浩置地说，优景苑的造价没有因此增加。
但“活跃、美丽、干净”水源计划评审小组成员之一戴礼翔却认为，对于小型项目的发展商来说，添加这些设计会增加造价，而在目前经济危机阴影笼罩下，他们不愿增加成本。
他说：“这要等到更多公共‘活跃、美丽、干净’水源计划项目完成后，设计技术也比较成熟了，而经济也复苏时，发展商才会更有信心在项目中增加这些设计。”也是DP Architect董事的戴礼翔预计两年后，会有较多发展商采纳相关设计。
公用事业局在三年前推出“活跃、美丽、干净”水源计划以来，已整修并美化了多个蓄水池和水道，在未来三年还会改造20多个，把本只用于蓄水治水的基础设施改头换面成公众休闲好去处。
计划的第二阶段主要是增加净化雨水设计。公用事业局已在巴南路试验“雨水花园”，花园的土壤能减缓雨水流入水道的速度，因此减少水道在暴雨时溢流的情况。
胜科集团与两公司合作 试验新型废水处理系统
胜科集团昨天在新加坡国际水资源周上，与本地两家公司：联合环境技术（United Envirotech）及美能材料科技（Memstar Technology），签署技术合作协议，第一次在本地试验以膜蒸馏系统（Membrane Distillation）处理和回收工业废水。
膜蒸馏系统主要是利用工业设施，如炼油厂、石油化工厂或发电厂等每天排出的大量热废气作燃料，处理和净化工业废水。
胜科集团总裁兼首席执行员邓健辉指出，新科技有助于减少工厂和城市把水排入周围的水道，最终希望能达到“零排放”的目标。
另一方面，胜科集团在裕廊岛上兴建的膜生物反应器（Membrane Bioreactor）废水处理系统昨天正式启用。
新系统建在集团位于裕廊岛“沙克拉”（Sakra）区的废水处理厂内。这是该集团在岛上的第二个膜生物反应器系统，每天可处理近3000立方米工业废水，比之前可处理的废水量增加50％。
胜科集团也是至今本地唯一采用这种新科技处理工业废水的公司。公司的另一个膜生物反应器系统于2006年启用。
膜生物反应器技术是一种较先进的高效用后水处理科技。和一般处理法相比，它可省却其中一些步骤，占地面积也较小，这对寸土如金的新加坡来说非常重要。
此外，公用事业局在乌鲁班丹供水回收厂也设有膜生物反应器厂，每天可处理上万立方米的工业废水，主要供应给裕廊岛上的用户。
水中寄生虫检测科技 我国有望取得新突破
检测饮用水中寄生虫的科技有望出现新突破，检测所需的过程预料可从目前的6个小时缩短至1个小时。研究项目一旦取得成功，我国将成为引领这方面技术的佼佼者。
环境及水务业发展理事会（EWI）于去年7月，向国内外业者与科研机构发出这项挑战，邀请各方提呈可加速检测会引发腹泻的“隐孢子虫”（Cryptosporidium）水生寄生虫的方案。
隐孢子虫是一种无法被氯（chlorine）消灭的病原体，病徵包括腹泻、呕吐及发热，大部份患者的病徵可持续数天至数星期。免疫系统有问题的患者或老人、小孩如受感染，病情可能非常严重，甚至威胁生命，是全球水供机构面对的一大挑战。
理事会能力发展处主任、同时也是公用事业局科技及水质署署长佘海利昨天在记者会上说，目前这类寄生虫的检测技术费时费力，从水样准备到获得检测结果最快也要6个小时，而且需要工作人员时时在旁监督。理事会希望通过这次的研究方案挑战，提升检测技术的效率，把过程变得全天候自动化，从而降低运作成本。
佘海利指出，隐孢子虫是一种较为复杂的病原体，如果新方案行得通，那意味着其他病原体的检测效率也可以获得提升。
新加坡国立大学和南洋理工大学三组科研人员分别建议通过超声波、生物光子及基因分析法进行隐孢子虫的检测，从18份参赛作品中脱颖而出，获得评审们的青睐。理事会承诺个别资助200万元研究基金，让他们做进一步的研发与测试。
理事会评估主席雷普权教授表示，理事会今年选择同时资助三个从不同角度切入研究项目，是因为它们看起来都极有机会研究成功。
国大机械工程系的林建明副教授在计划书中建议，使用超声波把隐孢子虫集中起来，然后再以纳米粒子或电场进行检测。他估计至少需要一年时间把各部分的组件做出来。南大电机与电子工程系的刘爱群副教授的构想，则是利用生物光子学，透过隐孢子虫的体积和折射率，找出水中是否含有这种病原体。另一名得奖的是南大机械与宇航工程系的龚海庆副教授。他准备打造一个可携带式的全面基因分析仪器，不仅能加快检测速度，还可通过上网，提供相关的实时信息。
根据理事会的要求，这三组科研人员必须在三年内完成可运作的原型（prototype）。
为让新加坡的每一个角落都与大自然融为一体，公用事业局开始把“活跃、美丽、干净”水源计划的触角伸向私人公寓的发展商，希望他们也能在项目中融入美化景观和净化雨水的设计概念。
近年来有越来越多私人公寓项目，特别是建在河流或水道旁的项目发展商在初步设计时，就已经把上述概念考虑在内。虽然这意味着增加造价，但发展商认为现代人越来越重视居住环境，所以这些公寓的售价也会被拉高。
环境及水源部高级政务次长许连碹博士昨天为“活跃、美丽、干净”水源计划设计指导原则举行推介仪式。
位于武吉知马路的私人公寓优景苑，有多面楼墙设有植物从屋顶垂下的绿墙设计，有雨水回收功能。（国浩置地提供）她在致词时说，有关指导原则的目的是要鼓励和引导发展商和业界人士规划、设计出有创意的水景，并将之融入发展项目中。她以位于武吉知马路的私人公寓优景苑为例，说明一些发展商已开始在设计中加入雨水回收系统和景观美化设计。
优景苑有多面楼墙设有植物从顶楼垂下成绿墙的设计，能在下雨时回收雨水，经芦苇种植床过滤后用于灌溉优景苑的园内植物。发展商国浩置地说，优景苑的造价没有因此增加。
但“活跃、美丽、干净”水源计划评审小组成员之一戴礼翔却认为，对于小型项目的发展商来说，添加这些设计会增加造价，而在目前经济危机阴影笼罩下，他们不愿增加成本。
他说：“这要等到更多公共‘活跃、美丽、干净’水源计划项目完成后，设计技术也比较成熟了，而经济也复苏时，发展商才会更有信心在项目中增加这些设计。”也是DP Architect董事的戴礼翔预计两年后，会有较多发展商采纳相关设计。
公用事业局在三年前推出“活跃、美丽、干净”水源计划以来，已整修并美化了多个蓄水池和水道，在未来三年还会改造20多个，把本只用于蓄水治水的基础设施改头换面成公众休闲好去处。
计划的第二阶段主要是增加净化雨水设计。公用事业局已在巴南路试验“雨水花园”，花园的土壤能减缓雨水流入水道的速度，因此减少水道在暴雨时溢流的情况。
胜科集团与两公司合作 试验新型废水处理系统
胜科集团昨天在新加坡国际水资源周上，与本地两家公司：联合环境技术（United Envirotech）及美能材料科技（Memstar Technology），签署技术合作协议，第一次在本地试验以膜蒸馏系统（Membrane Distillation）处理和回收工业废水。
膜蒸馏系统主要是利用工业设施，如炼油厂、石油化工厂或发电厂等每天排出的大量热废气作燃料，处理和净化工业废水。
胜科集团总裁兼首席执行员邓健辉指出，新科技有助于减少工厂和城市把水排入周围的水道，最终希望能达到“零排放”的目标。
另一方面，胜科集团在裕廊岛上兴建的膜生物反应器（Membrane Bioreactor）废水处理系统昨天正式启用。
新系统建在集团位于裕廊岛“沙克拉”（Sakra）区的废水处理厂内。这是该集团在岛上的第二个膜生物反应器系统，每天可处理近3000立方米工业废水，比之前可处理的废水量增加50％。
胜科集团也是至今本地唯一采用这种新科技处理工业废水的公司。公司的另一个膜生物反应器系统于2006年启用。
膜生物反应器技术是一种较先进的高效用后水处理科技。和一般处理法相比，它可省却其中一些步骤，占地面积也较小，这对寸土如金的新加坡来说非常重要。
此外，公用事业局在乌鲁班丹供水回收厂也设有膜生物反应器厂，每天可处理上万立方米的工业废水，主要供应给裕廊岛上的用户。
水中寄生虫检测科技 我国有望取得新突破
检测饮用水中寄生虫的科技有望出现新突破，检测所需的过程预料可从目前的6个小时缩短至1个小时。研究项目一旦取得成功，我国将成为引领这方面技术的佼佼者。
环境及水务业发展理事会（EWI）于去年7月，向国内外业者与科研机构发出这项挑战，邀请各方提呈可加速检测会引发腹泻的“隐孢子虫”（Cryptosporidium）水生寄生虫的方案。
隐孢子虫是一种无法被氯（chlorine）消灭的病原体，病徵包括腹泻、呕吐及发热，大部份患者的病徵可持续数天至数星期。免疫系统有问题的患者或老人、小孩如受感染，病情可能非常严重，甚至威胁生命，是全球水供机构面对的一大挑战。
理事会能力发展处主任、同时也是公用事业局科技及水质署署长佘海利昨天在记者会上说，目前这类寄生虫的检测技术费时费力，从水样准备到获得检测结果最快也要6个小时，而且需要工作人员时时在旁监督。理事会希望通过这次的研究方案挑战，提升检测技术的效率，把过程变得全天候自动化，从而降低运作成本。
佘海利指出，隐孢子虫是一种较为复杂的病原体，如果新方案行得通，那意味着其他病原体的检测效率也可以获得提升。
新加坡国立大学和南洋理工大学三组科研人员分别建议通过超声波、生物光子及基因分析法进行隐孢子虫的检测，从18份参赛作品中脱颖而出，获得评审们的青睐。理事会承诺个别资助200万元研究基金，让他们做进一步的研发与测试。
理事会评估主席雷普权教授表示，理事会今年选择同时资助三个从不同角度切入研究项目，是因为它们看起来都极有机会研究成功。
国大机械工程系的林建明副教授在计划书中建议，使用超声波把隐孢子虫集中起来，然后再以纳米粒子或电场进行检测。他估计至少需要一年时间把各部分的组件做出来。南大电机与电子工程系的刘爱群副教授的构想，则是利用生物光子学，透过隐孢子虫的体积和折射率，找出水中是否含有这种病原体。另一名得奖的是南大机械与宇航工程系的龚海庆副教授。他准备打造一个可携带式的全面基因分析仪器，不仅能加快检测速度，还可通过上网，提供相关的实时信息。
根据理事会的要求，这三组科研人员必须在三年内完成可运作的原型（prototype）。
Signs Of Upturn In Resale Market: JLL Report
Source : TODAY, June 25, 2009
As buyers thronged showflats amid improved sentiment in recent months, the resale market also saw an uptick in the second quarter, according to a report by Jones Lang LaSalle (JLL).
Using recent housing data, the consultancy estimated that resale volumes increased more than 70 per cent from the first quarter to reach 1,464 transactions.
The two main reasons were pent-up demand from Housing Development Board (HDB) upgraders - whose own flats were seeing slower price declines than private homes - and the affordable pricing despite marginal increases, said JLL.
HDB upgraders made up almost half the buyers in the second quarter's resale market, some 11 percentage points above the 35 per cent recorded in the same period a year earlier.
Further attracting HDB upgraders was the fact that resale prices for private homes remain "highly affordable", JLL said. While current average resale prices in the mass market have surged 9.4 per cent from the previous quarter to $580 per square foot (psf) - the highest rebound across other submarkets - they remain 17 per cent below the peak of the first quarter of last year, the firm estimated.
In the luxury segment, it found that buyers were more willing to commit, seeing that average prices of $1,800 psf represented a 34-per-cent discount from peak. This is despite current prices being 53 per cent above the last trough in the first quarter of 2005, JLL noted.
South East Asia head of research Dr Chua Yang Liang believes the uptick is not sustainable, as the buoyancy is coming from short-term factors such as pent-up demand, discounted pricing and attractive mortgage packages.
The sustainability of any market recovery, he said, depends on longer-term factors such as growth in demand and economic production.
"I do not reckon the current activity in the market is likely to remain if prices continue to rise unsupported by growth of gross domestic product," Dr Chua said.
As buyers thronged showflats amid improved sentiment in recent months, the resale market also saw an uptick in the second quarter, according to a report by Jones Lang LaSalle (JLL).
Using recent housing data, the consultancy estimated that resale volumes increased more than 70 per cent from the first quarter to reach 1,464 transactions.
The two main reasons were pent-up demand from Housing Development Board (HDB) upgraders - whose own flats were seeing slower price declines than private homes - and the affordable pricing despite marginal increases, said JLL.
HDB upgraders made up almost half the buyers in the second quarter's resale market, some 11 percentage points above the 35 per cent recorded in the same period a year earlier.
Further attracting HDB upgraders was the fact that resale prices for private homes remain "highly affordable", JLL said. While current average resale prices in the mass market have surged 9.4 per cent from the previous quarter to $580 per square foot (psf) - the highest rebound across other submarkets - they remain 17 per cent below the peak of the first quarter of last year, the firm estimated.
In the luxury segment, it found that buyers were more willing to commit, seeing that average prices of $1,800 psf represented a 34-per-cent discount from peak. This is despite current prices being 53 per cent above the last trough in the first quarter of 2005, JLL noted.
South East Asia head of research Dr Chua Yang Liang believes the uptick is not sustainable, as the buoyancy is coming from short-term factors such as pent-up demand, discounted pricing and attractive mortgage packages.
The sustainability of any market recovery, he said, depends on longer-term factors such as growth in demand and economic production.
"I do not reckon the current activity in the market is likely to remain if prices continue to rise unsupported by growth of gross domestic product," Dr Chua said.
Gaming Important Part Of IR Revenues
Source : The Business Times, June 25, 2009
It will make up big chunk of Sentosa's revenue, Marina Sands' Ebitda: CLSA
The casinos may be a small component of Singapore's integrated resorts (IRs) but both operators will be counting on gaming revenue for significant support.
A report by CLSA reveals that for Marina Bay Sands (MBS), gaming Ebitda for 2011-2012 is estimated at US$700-800 million - about 75 per cent of total Ebitda.
Money spinner: CLSA says Marina Bay Sands is still likely to generate the highest Ebitda of any LVS casino globally, contributing 40 per cent of LVS's group Ebitda
For Resorts World at Sentosa (RWS), gaming revenue is expected to contribute about 70 per cent of overall revenue. While no value figure was given, CLSA said that up to 40 per cent of this will come from locals.
Andrew Hartley, Singapore country head at CLSA, said: 'People assume the local market will be very quiet, which I think is wrong. Just look at the huge daily turnover in locally listed small-caps to see there are a lot of bored retirees out there just waiting for a chance to go and punt their pensions. Or go to Tanah Merah to see the families lined up to board the boats for a day of gaming on the high seas.'
How effective the $100 daily entry fee will be at deterring locals is unknown. However, CLSA believes - but cannot confirm - that the $2,000 annual entrance fee may allow unlimited access to both casinos.
'We believe the strength of the local market will surprise,' Mr Hartley said.
CLSA noted that in 2008, Las Vegas Sands (LVS), which owns MBS, provided guidance for MBS 2012 Ebitda (earnings before interest, tax, depreciation and amortisation) of US$1.2 billion. 'Understandably, the company is no longer maintaining that guidance, as the world is in a different place than where we were previously,' CLSA said.
However, MBS is still likely to generate the highest Ebitda of any LVS casino globally, with MBS contributing 40 per cent of LVS's group Ebitda.
For LVS, in particular, profit targets will need to be met. CLSA said: 'We understand that the debt covenants kick in after the first full four quarters. When opened, (LVS's) credit facility will not be completely drawn down with payments made in 2010 and MBS will be still paying out for capex until Q2 2011 - around US$500 million in 2011. By that point, management should be generating at least S$800 million in Ebitda or there may be some debt covenants issues.'
The report said that LVS management expects gaming revenue to be biased towards VIPs rather than the mass market, with around a 60-40 split.
RWS, which is owned by Genting Singapore, will also target VIP and mass market players. About 30 per cent of the gaming tables are expected to be reserved for KJ (key junket) VIP players. To this end, RWS has recruited high-roller marketing veteran Mabel Lee, formerly with casino operator Wynn, to drum up business.
There is likely be a core of 20 KJ operators used by RWS, with a strong focus to solicit patrons from Indonesia, China and India, CLSA said.
Junket operators are important to the gaming industry. In Macau, one of the primary roles of junkets is facilitation, as there are limits on the amount of renminbi that can be brought into Macau - 20,000 renminbi (S$4,300) and US$5,000 per visit, which is less than the average bet in a VIP room.
To qualify as a VIP player, players need to register and have a minimum buy-in of S$100,000.
RWS will also have Universal Studios Singapore as a revenue generator. CLSA said that the overall building cost of about S$1.5 billion for USS is considerably cheaper than that of the estimated US$2 billion Universal Studios in Japan. This is largely due to cheaper construction materials, it said. As such, the estimated entry price of S$80 per adult will be cheaper than that at Universal Studios Japan, Orlando and Hollywood.
CLSA also said that RWS 'is taking the meetings, incentives, conventions and exhibitions (Mice) business more seriously than we expected'. 'We understand management have booked 38 events with more than 500 people.'
Over at MBS, CLSA said that the first Mice event has been booked for April 1, 2010.
CLSA expects both IRs to open in early 2010.
It will make up big chunk of Sentosa's revenue, Marina Sands' Ebitda: CLSA
The casinos may be a small component of Singapore's integrated resorts (IRs) but both operators will be counting on gaming revenue for significant support.
A report by CLSA reveals that for Marina Bay Sands (MBS), gaming Ebitda for 2011-2012 is estimated at US$700-800 million - about 75 per cent of total Ebitda.
Money spinner: CLSA says Marina Bay Sands is still likely to generate the highest Ebitda of any LVS casino globally, contributing 40 per cent of LVS's group EbitdaFor Resorts World at Sentosa (RWS), gaming revenue is expected to contribute about 70 per cent of overall revenue. While no value figure was given, CLSA said that up to 40 per cent of this will come from locals.
Andrew Hartley, Singapore country head at CLSA, said: 'People assume the local market will be very quiet, which I think is wrong. Just look at the huge daily turnover in locally listed small-caps to see there are a lot of bored retirees out there just waiting for a chance to go and punt their pensions. Or go to Tanah Merah to see the families lined up to board the boats for a day of gaming on the high seas.'
How effective the $100 daily entry fee will be at deterring locals is unknown. However, CLSA believes - but cannot confirm - that the $2,000 annual entrance fee may allow unlimited access to both casinos.
'We believe the strength of the local market will surprise,' Mr Hartley said.
CLSA noted that in 2008, Las Vegas Sands (LVS), which owns MBS, provided guidance for MBS 2012 Ebitda (earnings before interest, tax, depreciation and amortisation) of US$1.2 billion. 'Understandably, the company is no longer maintaining that guidance, as the world is in a different place than where we were previously,' CLSA said.
However, MBS is still likely to generate the highest Ebitda of any LVS casino globally, with MBS contributing 40 per cent of LVS's group Ebitda.
For LVS, in particular, profit targets will need to be met. CLSA said: 'We understand that the debt covenants kick in after the first full four quarters. When opened, (LVS's) credit facility will not be completely drawn down with payments made in 2010 and MBS will be still paying out for capex until Q2 2011 - around US$500 million in 2011. By that point, management should be generating at least S$800 million in Ebitda or there may be some debt covenants issues.'
The report said that LVS management expects gaming revenue to be biased towards VIPs rather than the mass market, with around a 60-40 split.
RWS, which is owned by Genting Singapore, will also target VIP and mass market players. About 30 per cent of the gaming tables are expected to be reserved for KJ (key junket) VIP players. To this end, RWS has recruited high-roller marketing veteran Mabel Lee, formerly with casino operator Wynn, to drum up business.
There is likely be a core of 20 KJ operators used by RWS, with a strong focus to solicit patrons from Indonesia, China and India, CLSA said.
Junket operators are important to the gaming industry. In Macau, one of the primary roles of junkets is facilitation, as there are limits on the amount of renminbi that can be brought into Macau - 20,000 renminbi (S$4,300) and US$5,000 per visit, which is less than the average bet in a VIP room.
To qualify as a VIP player, players need to register and have a minimum buy-in of S$100,000.
RWS will also have Universal Studios Singapore as a revenue generator. CLSA said that the overall building cost of about S$1.5 billion for USS is considerably cheaper than that of the estimated US$2 billion Universal Studios in Japan. This is largely due to cheaper construction materials, it said. As such, the estimated entry price of S$80 per adult will be cheaper than that at Universal Studios Japan, Orlando and Hollywood.
CLSA also said that RWS 'is taking the meetings, incentives, conventions and exhibitions (Mice) business more seriously than we expected'. 'We understand management have booked 38 events with more than 500 people.'
Over at MBS, CLSA said that the first Mice event has been booked for April 1, 2010.
CLSA expects both IRs to open in early 2010.
Private Resale Home Deals Shoot Up In Q2
Source : The Business Times, June 25, 2009
Average resale prices up from Q1 but still significantly below peak levels last year
THE buying frenzy at property launches has spread to the secondary market. The number of private homes sold in the resale market - excluding sub-sales - has risen to 1,464 units this quarter, based on Urban Redevelopment Authority caveat data at June 19.
One Devonshire: CBRE expects developers to sell 3,500 to 4,000 new private homes this quarter - 35-54% higher than the Q1 figure of 2,596
The figure is 71 per cent higher than the 856 units in Q1 this year, according to an analysis by Jones Lang LaSalle (JLL).
And more caveats could surface when full Q2 data emerges, with sales matching - or even surpassing - the 1,706 units sold in the resale market in Q2 last year, JLL reckons.
Average resale capital values have risen in Q2 from Q1 but are still below last year's peaks across all tiers - mass market, prime and luxury prime. This could be a key factor fuelling resale deals. Another factor could be HDB upgraders keen on buying a completed private home they can move into immediately. Also, rental yields from investing in completed property are higher than the measly interest rates earned on fixed deposits.
In another development yesterday, CB Richard Ellis said the median price per sq ft of freehold non-landed private homes sold by developers slipped 14.6 per cent from $1,051 psf in Q1 2009 to $898 psf in Q2, based on caveat data as at June 24.
However, once caveats for higher-priced projects like Martin Place Residences, The Wharf Residences and One Devonshire are lodged, the median psf price for Q2 is expected to be higher than the Q1 figure, CBRE added.
The firm expects developers to sell 3,500 to 4,000 new private homes this quarter, which would be 35 to 54 per cent higher than the Q1 figure of 2,596. The expected Q2 sales tally would be similar to levels achieved during the peak year of 2007, when developers sold an average of 3,700 units per quarter.
'The stock market rally, coupled with strong liquidity and developers' discounts, have resulted in a surge in new home sales this quarter,' CBRE executive director (residential) Joseph Tan said.
JLL's head of research (South-east Asia) Chua Yang Liang said additional factors buoying buying sentiment include pent-up demand and the interest absorption schemes. However, he cautioned: 'I don't reckon the current activity in the market is likely to remain if prices continue to rise unsupported by GDP growth.'
CBRE said that based on caveats lodged so far, HDB upgraders accounted for 65 per cent of buyers of new homes in the first half of 2009, higher than their 44 per cent share for the whole of last year. HDB upgraders have also been active in the secondary market, accounting for 49 per cent of buyers of resale and sub-sale units, up from their 33 per cent share last year, the firm added.
Sub-sales and resales are secondary-market transactions. Sub-sales involve projects that are yet to obtain a Certificate of Statutory Completion (CSC). Resales relate to projects that have received CSC.
JLL's analysis shows the average resale capital value for non-landed homes in the mass market was $580 psf in Q2, up 9.4 per cent from Q1. It is also 17 per cent below the Q1 2008 peak and remains highly affordable to most HDB upgraders, JLL said.
In the luxury market, the average resale capital value rose 7.8 per cent quarter on quarter to $1,800 psf in Q2. Against the peak in early 2008, the latest Q2 figure was down 34 per cent.
Average resale prices up from Q1 but still significantly below peak levels last year
THE buying frenzy at property launches has spread to the secondary market. The number of private homes sold in the resale market - excluding sub-sales - has risen to 1,464 units this quarter, based on Urban Redevelopment Authority caveat data at June 19.
One Devonshire: CBRE expects developers to sell 3,500 to 4,000 new private homes this quarter - 35-54% higher than the Q1 figure of 2,596The figure is 71 per cent higher than the 856 units in Q1 this year, according to an analysis by Jones Lang LaSalle (JLL).
And more caveats could surface when full Q2 data emerges, with sales matching - or even surpassing - the 1,706 units sold in the resale market in Q2 last year, JLL reckons.
Average resale capital values have risen in Q2 from Q1 but are still below last year's peaks across all tiers - mass market, prime and luxury prime. This could be a key factor fuelling resale deals. Another factor could be HDB upgraders keen on buying a completed private home they can move into immediately. Also, rental yields from investing in completed property are higher than the measly interest rates earned on fixed deposits.
In another development yesterday, CB Richard Ellis said the median price per sq ft of freehold non-landed private homes sold by developers slipped 14.6 per cent from $1,051 psf in Q1 2009 to $898 psf in Q2, based on caveat data as at June 24.
However, once caveats for higher-priced projects like Martin Place Residences, The Wharf Residences and One Devonshire are lodged, the median psf price for Q2 is expected to be higher than the Q1 figure, CBRE added.
The firm expects developers to sell 3,500 to 4,000 new private homes this quarter, which would be 35 to 54 per cent higher than the Q1 figure of 2,596. The expected Q2 sales tally would be similar to levels achieved during the peak year of 2007, when developers sold an average of 3,700 units per quarter.
'The stock market rally, coupled with strong liquidity and developers' discounts, have resulted in a surge in new home sales this quarter,' CBRE executive director (residential) Joseph Tan said.
JLL's head of research (South-east Asia) Chua Yang Liang said additional factors buoying buying sentiment include pent-up demand and the interest absorption schemes. However, he cautioned: 'I don't reckon the current activity in the market is likely to remain if prices continue to rise unsupported by GDP growth.'CBRE said that based on caveats lodged so far, HDB upgraders accounted for 65 per cent of buyers of new homes in the first half of 2009, higher than their 44 per cent share for the whole of last year. HDB upgraders have also been active in the secondary market, accounting for 49 per cent of buyers of resale and sub-sale units, up from their 33 per cent share last year, the firm added.
Sub-sales and resales are secondary-market transactions. Sub-sales involve projects that are yet to obtain a Certificate of Statutory Completion (CSC). Resales relate to projects that have received CSC.
JLL's analysis shows the average resale capital value for non-landed homes in the mass market was $580 psf in Q2, up 9.4 per cent from Q1. It is also 17 per cent below the Q1 2008 peak and remains highly affordable to most HDB upgraders, JLL said.
In the luxury market, the average resale capital value rose 7.8 per cent quarter on quarter to $1,800 psf in Q2. Against the peak in early 2008, the latest Q2 figure was down 34 per cent.
Ion Orchard, Orchard Central Have Healthy Lease Figures
Source : The Business Times, June 25, 2009
Ion is 94% leased, Orchard Central is 80% leased, say their developers
ION Orchard, which is due to open in a month, is 94 per cent leased, the mall's developer, Orchard Turn Developments, said yesterday.
Previously, the developer said the mall was 80 per cent leased and it was in advanced negotiations for the remaining space.
Shoppers' facade: Ion Orchard's management hopes many of the 333 shops will open in time for the mall's soft opening on July21. To give tenants an incentive, Ion Orchard said they will get 30% rebates off base rents
At the other end of Orchard Road, 80 per cent of space in Orchard Central is also committed. Previously, developer Far East Organization said the mall was 65 per cent leased.
Orchard Central is already open to shoppers. Tenants have progressively opened for business since early June. The mall's soft opening is slated for early July, by which time about 100 shops should be open, Far East says.
As for Ion Orchard, management hopes many of the 333 shops will open in time for the mall's soft opening on July 21.
'They (the tenants) are rushing to finish renovations and we hope as many of them as possible will open with us,' said Soon Su Lin, chief executive of Orchard Turn Developments, which is building the mall. Orchard Turn Developments is jointly owned by CapitaLand and Hong Kong's Sun Hung Kai Properties.
To give tenants an incentive to open on time, Ion Orchard said in March that they would get 30 per cent rebates off base rents if they opened for business by July 21. The response has been 'very positive' so far, Ms Soon said.
Neither Ion Orchard nor Orchard Central have given a recent update on asking rents. Ion Orchard has said previously that its rents range from $20 to $80 per sq ft per month (psf pm). Rents at Orchard Central range from $20 psf pm to more than $70 psf pm, Far East Organization said late last year.
But industry watchers have said that signing rents at most existing Orchard Road malls have since fallen, which means asking rents at Ion Orchard and Orchard Central could also have edged down.
Ion Orchard said yesterday that more than 21 per cent of its 640,000 sq ft of retail space will be dedicated to food and dining - with many casual and fine dining outlets offering local and international fare, plus food and confectionary stores and a gourmet supermarket.
28 restaurants and cafes will be spread over different levels of the mall, with the largest clusters on level 4 for fine dining, and basements 2 and 3 for casual dining. In addition, basement 4 will feature a food hall, with 80 stalls offering a range of cuisines for all tastes.
Ms Soon said that Ion Orchard remains on the lookout for suitable retail and F&B concepts for the 6 per cent of space that has yet to be leased.
Ion is 94% leased, Orchard Central is 80% leased, say their developers
ION Orchard, which is due to open in a month, is 94 per cent leased, the mall's developer, Orchard Turn Developments, said yesterday.
Previously, the developer said the mall was 80 per cent leased and it was in advanced negotiations for the remaining space.
Shoppers' facade: Ion Orchard's management hopes many of the 333 shops will open in time for the mall's soft opening on July21. To give tenants an incentive, Ion Orchard said they will get 30% rebates off base rentsAt the other end of Orchard Road, 80 per cent of space in Orchard Central is also committed. Previously, developer Far East Organization said the mall was 65 per cent leased.
Orchard Central is already open to shoppers. Tenants have progressively opened for business since early June. The mall's soft opening is slated for early July, by which time about 100 shops should be open, Far East says.
As for Ion Orchard, management hopes many of the 333 shops will open in time for the mall's soft opening on July 21.
'They (the tenants) are rushing to finish renovations and we hope as many of them as possible will open with us,' said Soon Su Lin, chief executive of Orchard Turn Developments, which is building the mall. Orchard Turn Developments is jointly owned by CapitaLand and Hong Kong's Sun Hung Kai Properties.
To give tenants an incentive to open on time, Ion Orchard said in March that they would get 30 per cent rebates off base rents if they opened for business by July 21. The response has been 'very positive' so far, Ms Soon said.
Neither Ion Orchard nor Orchard Central have given a recent update on asking rents. Ion Orchard has said previously that its rents range from $20 to $80 per sq ft per month (psf pm). Rents at Orchard Central range from $20 psf pm to more than $70 psf pm, Far East Organization said late last year.
But industry watchers have said that signing rents at most existing Orchard Road malls have since fallen, which means asking rents at Ion Orchard and Orchard Central could also have edged down.
Ion Orchard said yesterday that more than 21 per cent of its 640,000 sq ft of retail space will be dedicated to food and dining - with many casual and fine dining outlets offering local and international fare, plus food and confectionary stores and a gourmet supermarket.
28 restaurants and cafes will be spread over different levels of the mall, with the largest clusters on level 4 for fine dining, and basements 2 and 3 for casual dining. In addition, basement 4 will feature a food hall, with 80 stalls offering a range of cuisines for all tastes.
Ms Soon said that Ion Orchard remains on the lookout for suitable retail and F&B concepts for the 6 per cent of space that has yet to be leased.
Asia Developers Eye New Projects
Source : The Business Times, June 25, 2009
Asian property firms are beginning to see light at the end of the tunnel and several are positioning for an upturn even as the world economy struggles to recover from its worst recession in decades.
The mood among US and European executives at this week's Reuters Global Real Estate Summit is glum, but Asian counterparts are more upbeat with some revealing plans for new projects in anticipation of an upturn later this year.
For instance, Chinese commercial property developer SOHO said it has built up a war chest of US$1.9 billion to replenish its land bank and intends to start new projects in Shanghai and Beijing in coming months.
Indiabulls, India's third-largest listed property developer, aims to launch six to seven residential projects in the financial year ending in March 2010 on the back of an expected recovery in demand.
'The general mood has been cautious, but there is also optimism. Asian companies in general are in much better shape compared to their peers in other regions,' said Ayala Land chief financial officer and Asian Public Real Estate Association president Jaime Ysmael.
Spurring the optimism in Asia is a recovery in residential markets, with price cuts drawing buyers in China, Hong Kong and Singapore, where saving rates are high and banks are prepared to lend.
The volume of transactions in these places are close to levels seen during the bull market of 2007 and residential property values have begun to edge upwards as developers such as Singapore's City Developments raise prices.
Asian property values did not rise as much as in the US and parts of Europe this decade. In dollar terms, property in countries such as the Philippines are cheaper than before the onset of the Asian crisis in late 1997.
Interest rate cuts and government stimulus plans are also helping regional property markets recover.
Singapore residential prices were supported by mortgage rates that were below rental yields, a Bank of America Merrill Lynch report said this week.
'At the current mortgage rate of around 2.75 per cent, our net cost of carry model implies that prices can rise by 30 per cent before home buyers enter negative carry,' it said. The bank predicts Singapore home prices will rise 20 per cent next year.
Singapore's housing market has been hit hard by the downturn, with home prices plunging nearly 14 per cent in the first quarter of this year, the steepest drop in over 30 years, according to government data.
Separately, Nomura said unemployment was stabilising in Hong Kong and forecasts home prices and rents in the Chinese territory will rise by 22 per cent and 11 per cent, respectively, this year.
A poll of 10 analysts conducted in conjunction with the Reuters Global Real Estate Summit showed China home prices are expected to gain an average of 10 per cent between now and the end of 2010.
The outlook for Asia's office market remained negative but most developers said rents have stabilised after falling sharply in the fourth quarter of 2008 and earlier this year.
Some investors said any pick-up may not be sustainable. - Reuters
Asian property firms are beginning to see light at the end of the tunnel and several are positioning for an upturn even as the world economy struggles to recover from its worst recession in decades.
The mood among US and European executives at this week's Reuters Global Real Estate Summit is glum, but Asian counterparts are more upbeat with some revealing plans for new projects in anticipation of an upturn later this year.
For instance, Chinese commercial property developer SOHO said it has built up a war chest of US$1.9 billion to replenish its land bank and intends to start new projects in Shanghai and Beijing in coming months.
Indiabulls, India's third-largest listed property developer, aims to launch six to seven residential projects in the financial year ending in March 2010 on the back of an expected recovery in demand.
'The general mood has been cautious, but there is also optimism. Asian companies in general are in much better shape compared to their peers in other regions,' said Ayala Land chief financial officer and Asian Public Real Estate Association president Jaime Ysmael.
Spurring the optimism in Asia is a recovery in residential markets, with price cuts drawing buyers in China, Hong Kong and Singapore, where saving rates are high and banks are prepared to lend.
The volume of transactions in these places are close to levels seen during the bull market of 2007 and residential property values have begun to edge upwards as developers such as Singapore's City Developments raise prices.
Asian property values did not rise as much as in the US and parts of Europe this decade. In dollar terms, property in countries such as the Philippines are cheaper than before the onset of the Asian crisis in late 1997.
Interest rate cuts and government stimulus plans are also helping regional property markets recover.
Singapore residential prices were supported by mortgage rates that were below rental yields, a Bank of America Merrill Lynch report said this week.
'At the current mortgage rate of around 2.75 per cent, our net cost of carry model implies that prices can rise by 30 per cent before home buyers enter negative carry,' it said. The bank predicts Singapore home prices will rise 20 per cent next year.
Singapore's housing market has been hit hard by the downturn, with home prices plunging nearly 14 per cent in the first quarter of this year, the steepest drop in over 30 years, according to government data.
Separately, Nomura said unemployment was stabilising in Hong Kong and forecasts home prices and rents in the Chinese territory will rise by 22 per cent and 11 per cent, respectively, this year.
A poll of 10 analysts conducted in conjunction with the Reuters Global Real Estate Summit showed China home prices are expected to gain an average of 10 per cent between now and the end of 2010.
The outlook for Asia's office market remained negative but most developers said rents have stabilised after falling sharply in the fourth quarter of 2008 and earlier this year.
Some investors said any pick-up may not be sustainable. - Reuters
NSW Home Sales Soar
Source : The Business Times, June 25, 2009
(SYDNEY) New South Wales Premier Nathan Rees revealed yesterday a record number of first home buyers in May showed there had never been a better time to enter the Australian property market.
About 7,300 first home buyers took advantage of government grants and stamp duty cuts, worth around A$178 million (S$207.9 million). It was the third record month in succession, with more than 21,000 first home buyers taking up the offers in that time, Mr Rees said.
'We're getting more young families into their first homes than ever before and helping them get on with establishing their lives,' he said.
The biggest amount of grants, which are worth up to A$24,000 for those buying new homes, were handed out for properties bought in Sydney's western suburbs.
Mr Rees noted the first home owner grants paid out in May were almost double those paid out in the same month last year. -- Xinhua
(SYDNEY) New South Wales Premier Nathan Rees revealed yesterday a record number of first home buyers in May showed there had never been a better time to enter the Australian property market.
About 7,300 first home buyers took advantage of government grants and stamp duty cuts, worth around A$178 million (S$207.9 million). It was the third record month in succession, with more than 21,000 first home buyers taking up the offers in that time, Mr Rees said.
'We're getting more young families into their first homes than ever before and helping them get on with establishing their lives,' he said.
The biggest amount of grants, which are worth up to A$24,000 for those buying new homes, were handed out for properties bought in Sydney's western suburbs.
Mr Rees noted the first home owner grants paid out in May were almost double those paid out in the same month last year. -- Xinhua
Demand For Taipei Office Space Rises
Source : The Business Times, June 25, 2009
(TAIPEI) The availability rate of prime office space in Taipei this year is likely to fall less than earlier expectations as closer ties with former political rival China helps boost demand for the island's real estate.
The availability rate for prime office space will likely be at about 15 per cent this year, compared with a March forecast of 18 per cent, Tony Chao, managing director of Jones Lang LaSalle in Taiwan told reporters. Rents will also possibly fall by a smaller degree this year compared with a previous forecast of about 15 to 20 per cent, the property services company said.
'Rents could fall by about 15 per cent this year, with the drop becoming apparent in the third quarter,' Mr Chao said. 'But compared with Hong Kong, Singapore and Shanghai, the rate of decline is considered small.'
Mr Chao also said he expected demand for office space from Chinese investors to pick up only from next year. 'I visited Beijing last month, and many state-linked companies expressed interest in coming to Taiwan. But there are still policy issues, and it typically takes about six months to find a space, so the market could be weak in the short term,' he added.
Easing tensions with China, which claims self-ruled democratic Taiwan as its own, has spurred renewed interest in the island's economy. Its stock market has surged over 50 per cent since hitting a trough in January this year. -- Reuters
(TAIPEI) The availability rate of prime office space in Taipei this year is likely to fall less than earlier expectations as closer ties with former political rival China helps boost demand for the island's real estate.
The availability rate for prime office space will likely be at about 15 per cent this year, compared with a March forecast of 18 per cent, Tony Chao, managing director of Jones Lang LaSalle in Taiwan told reporters. Rents will also possibly fall by a smaller degree this year compared with a previous forecast of about 15 to 20 per cent, the property services company said.
'Rents could fall by about 15 per cent this year, with the drop becoming apparent in the third quarter,' Mr Chao said. 'But compared with Hong Kong, Singapore and Shanghai, the rate of decline is considered small.'
Mr Chao also said he expected demand for office space from Chinese investors to pick up only from next year. 'I visited Beijing last month, and many state-linked companies expressed interest in coming to Taiwan. But there are still policy issues, and it typically takes about six months to find a space, so the market could be weak in the short term,' he added.
Easing tensions with China, which claims self-ruled democratic Taiwan as its own, has spurred renewed interest in the island's economy. Its stock market has surged over 50 per cent since hitting a trough in January this year. -- Reuters
Resorts World On Track
Source : The Straits Times, June 25, 2009
OVER 80 per cent of the construction work at the Sentosa casino-resort has been completed, with only the last 20 per cent to go before its opening in first quarter of next year.
Works on the second phase of construction, two more hotels, the water theme park, marine life park and Marine Xperiential Museum will begin next year. --PHOTO: RESORTS WORLD AT SENTOSA
Resorts World at Sentosa gave a construction update on Thursday morning with its executive vice-president of projects Michael Chin giving the media a tour of the site.
'Everything is on track,' Mr Chin said.
Four hotels, the Universal Studios theme park, the half-kilometre stretch housing its retail and dining establishments and theatre for shows and casino will be ready for its opening next year.
This constitutes only 60 per cent of the 49-ha development. Works on the second phase of construction, two more hotels, the water theme park, marine life park and Marine Xperiential Museum will begin next year, said Mr Chin.
It will take up to two years before the final segment will be completed.
For now, the team is concentrating on rushing to complete the first phase.
Most of the construction work for Singapore's first Universal Studios is done, with only the fitting out and setting up of the rides to be done. These works are expected to be completed by August after which testings and commissioning will begin.
Because the casino-resort is opening during such economic downturn, Ms Krist Boo, its head of communications, said it has revised downwards the number of visitors expected from 15 million for its first year of operations to 12 to 13 million.
Still she said: 'We remain confident that we will draw the numbers.'
OVER 80 per cent of the construction work at the Sentosa casino-resort has been completed, with only the last 20 per cent to go before its opening in first quarter of next year.
Works on the second phase of construction, two more hotels, the water theme park, marine life park and Marine Xperiential Museum will begin next year. --PHOTO: RESORTS WORLD AT SENTOSAResorts World at Sentosa gave a construction update on Thursday morning with its executive vice-president of projects Michael Chin giving the media a tour of the site.
'Everything is on track,' Mr Chin said.
Four hotels, the Universal Studios theme park, the half-kilometre stretch housing its retail and dining establishments and theatre for shows and casino will be ready for its opening next year.
This constitutes only 60 per cent of the 49-ha development. Works on the second phase of construction, two more hotels, the water theme park, marine life park and Marine Xperiential Museum will begin next year, said Mr Chin.
It will take up to two years before the final segment will be completed.
For now, the team is concentrating on rushing to complete the first phase.
Most of the construction work for Singapore's first Universal Studios is done, with only the fitting out and setting up of the rides to be done. These works are expected to be completed by August after which testings and commissioning will begin.
Because the casino-resort is opening during such economic downturn, Ms Krist Boo, its head of communications, said it has revised downwards the number of visitors expected from 15 million for its first year of operations to 12 to 13 million.
Still she said: 'We remain confident that we will draw the numbers.'
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