UE Wins $85m Job At Marina Bay Sands IR

Source : The Business Times, April 02, 2008

UNITED Engineers Ltd (UE) said yesterday that its wholly owned unit United Engineers (Singapore) (UES) won a contract worth $85 million to provide electrical services for the hotel development at the Marina Bay Sands Integrated Resort (IR).

The contract was awarded by Ssangyong Engineering & Construction Co Ltd to engage UES as a nominated sub-contractor and came amid a slew of contracts generated by the construction of the two integrated resorts here.

Artist Impression of Marina Bay Sands Integrated Resort

Under the terms of the agreement, UES will supply, deliver, install, test and commission all electrical installation for the hotel. The work is expected to start in the second quarter this year and be completed by the fourth quarter of 2009.

The contract is expected to have a positive impact on the earnings of the group in future, UE said in a statement.

UES is an engineering company with competencies in the procurement and instrumentation of mechanical and electrical works. It has been involved in other major projects such as ION Orchard and Singapore's wastewater projects - the Changi Water Reclamation Plant and Choa Chu Kang Waterworks.

The development of the two integrated resorts here have proven to be a boon for some Singapore firms so far. Last month, another electrical engineering firm, TEE International, was awarded the contracts for North and South Podium electrical installation for the Marina Bay Sands IR for a total sum of $109.01 million.

Among the recent contracts given out, Sembawang Engineers and Constructors was also awarded a $400 million contract by Marina Bay Sands Pte Ltd to build the North Podium comprising the casino, theatres and retail arcade.

As for the other IR, Resorts World at Sentosa (RWS), communications design and production firm Kingsmen Creatives secured a $14.5 million deal last month to build props and show sets for the Universal Studios there, which is a major feature of the resort being built by RWS, a subsidiary of Genting International.

在组屋新镇恢复兴建 湿巴刹明年重现盛港

《联合早报》Apr 02, 2008

在组屋新镇消失已久的湿巴刹和小贩中心，预计将在明年在盛港地铁站附近重现。

有消息指出，建屋发展局料将在今年第二季度把盛港广场与康埔华通道之间的空地供私人业者投标，交由他们兴建和经营湿巴刹和小贩中心，而且工程预计将在明年完成。之前的媒体报道指出，这将是个独立式、自然通风的湿巴刹和小贩中心，属于短期地契。

建屋发展局发言人受询时则表示，兴建湿巴刹的地点仍未开始招标，目前无法提供更多详情。

居民吴玉金从组屋走廊可望见预计将建立湿巴刹的空地。

本来2004年起决定 不在新组屋区兴建湿巴刹

建屋局和国家环境局本来自2004年起决定不在新组屋区投资兴建湿巴刹和熟食中心，主要因为现代的年轻消费群倾向到超级市场购物，不再光顾湿巴刹，导致许多老巴刹面临生意惨淡的困境。

不过，由国家发展部政务部长傅海燕领导的“组屋社区心件论坛”在去年8月公布的建议报告中指出，有不少公众希望保留湿巴刹，因为它是许多居民聚集和交流的场所，尤其是年长者，更怀念选择多、价格大众化和环境亲切的湿巴刹。

为了平衡居民的不同需求，“心件论坛”小组建议在经评估后确定商业可行的地点，恢复兴建湿巴刹和小贩中心。傅海燕当时受访时说，由于老市镇一般已经有湿巴刹，所以当局可考虑在一些新市镇设立湿巴刹，特别是为年长的居民提供这样的服务。建屋局当时表示正同相关机构拟定细节。

居民表示欢迎

受访的居民对兴建新湿巴刹表示欢迎。对康埔华通道201B座组屋居民吴玉金（59岁，工厂操作员）来说，这更是她期盼已久的事。她住在这里约7年，不过每个星期天仍到旧居宏茂桥的湿巴刹买菜。

她说：“湿巴刹卖的东西比较便宜、摊位多，而且可以选择所要买的份量，不像超市都是已经包装好的。”

虽然盛港第118座的鲤河大厦（Rivervale Plaza）也有巴刹，不过她认为地点对她来说并不方便，需要搭巴士，还得步行。

她说，现在家人通常只能到勘宝坊（Compass Point）的食阁吃东西，她希望除了湿巴刹外也能设有小贩中心，提供经济实惠的美食。

她说：“我能在买菜后到小贩中心吃东西，平时也可以和家人一同到那里用餐。这里如果建湿巴刹，我想我一个星期至少会光顾3次。”

盛堡（Compass Heights）公寓居民林健平（49岁，家庭主妇）的住家虽然非常靠近超级市场，不过她仍喜欢到鲤河大厦的巴刹买菜。

她说：“不过，那里的人潮相当多。我希望新的湿巴刹会比较大、有较多摊位，让我们有多一些选择。”

白沙榜鹅集选区议员张有福受访时说，他在向居民收集意见时发现，有75％支持兴建湿巴刹，只有少数担心会引起交通问题，希望当局在湿巴刹附近提供更多停车位。

他也指出，居民对湿巴刹存有矛盾的情绪，一方面希望保留湿巴刹作为组屋区的特色，另一方面却因生活忙碌，没有时间到巴刹购物，导致这些湿巴刹难以生存。　

他说：“新一代湿巴刹需与旧的有所不同，改变人们对湿巴刹脏、臭的负面印象。私人业者也必须以更具创意的方法来经营湿巴刹，让摊主在早上结束买卖后，其余时间也能很好地利用场地来做其他生意。”

建屋局预估数据显示 第一季组屋转售价指数再攀新高

《联合早报》Apr 02, 2008

建屋发展局预估数据显示，今年第一季组屋转售价指数再攀新高，达125.8点，比上季涨3.4％；比亚洲金融风暴前高峰少了10点左右。

虽然增幅减缓，但组屋转售价整体来说保持稳健增长，市场人士因此预计，组屋转售价今年将继续上扬，甚至有望在年底超越1996年第四季、亚洲金融风暴前创下的136.9点高峰。

转售市场的价格增长在买家态度谨慎影响下连续第二季减缓，和去年第四季5.7％的增长相比少了2.3％。

组屋转售价去年在私人房地产价格带动下水涨船高，地点好的组屋转售价屡创新高，一些组屋溢价（cash-over-valuation）也飙升到令人咋舌的水平。　

组屋转售价放缓趋势 今年将持续下去

ERA房地产公司副总裁林东荣认为，组屋转售价放缓的趋势在今年将持续下去，因为“买家对房地产市场的态度谨慎，已形成对支付高溢价的一种阻力，加上建屋局增加新组屋供应，（因此）组屋转售价指数减缓是预料中事。”

林东荣也指出，买家对溢价更敏感，如果组屋地点一般，要求超过5万元溢价的屋主可能得等上很长的时间才有可能把组屋卖出，一些甚至无法找到买家。

当局公布的资料也显示，在今年2月的组屋转售交易中，四分之一的溢价低于1万元，包括宏茂桥、勿洛、淡滨尼和义顺的组屋。

不过，博纳集团（PropNex）总裁伊斯迈认为，放缓是因为转售市场需求强劲和建屋局现成组屋减少两大因素所致。

他说：“当局未售出的现成组屋单位在4年前达上万个，现在不到2000个，现成组屋供应明显减少。与此同时，租赁组屋价格也不断上升，平均租金从每月800元上涨到1800到2000元，促使更多永久居民转向购买组屋，进一步刺激需求。”

虽然组屋转售市场逐渐降温，但组屋转售市场占有率达45％的ERA房地产公司的资料却显示，市场仍活跃，公司的交易量和去年同期相比不相上下，并没有减少。

鉴于人们对组屋需求强劲，建屋局今年推出的新组屋有可能超越过去两年推出的数额。当局计划在接下来6个月，通过组屋预购计划（BTO）推出5000个单位。这些单位分布在榜鹅、盛港、兀兰和武吉班让。加上已在首季通过组屋预购计划推出的1100个单位，它准备在今年首9个月推出6100个组屋单位，比去年全年的6000个和前年的2400个来得高。

当局也已宣布在四美、大巴窑和勿洛推出三块新地段，供私人发展商在设计、兴建和销售计划下（Design, Build and SellScheme）投标发展组屋。预计这些地段可建1500个组屋单位。

但当局推出的这些新组屋能解决的也只是部分买家的购屋需求。林东荣说：“那些急需买房子的买家还是得依靠转售市场解决住屋需求。”

今年头两个月交易量显著减少 私宅价格涨幅再放缓

《联合早报》Apr 02, 2008

虽然在今年头两个月，私宅交易量显著减少，但新数据显示，私宅价格不但没有下滑，还上涨了4.2％，只是涨幅进一步放缓。这也是自2006年第四季的一年多来，本地出现的最低私宅价格涨幅。

市区重建局昨天发表的初步预估数字显示，2008年第一季的私人房屋价格，比去年第四季高4.2％，第四季的季比涨幅是6.8％。这显示本地私人住宅的价格已开始出现增长放缓的现象。

市场人士认为，涨幅放缓显示，美国经济、次贷危机和股市带来的持续隐忧，使买家谨慎。房屋售卖交易量相当少，也使所预估的季比价格增长是4.2％，比去年第四季的6.8％低。但尽管今年头两个月的私人住宅交易量减少，但价格却没有下滑，显示本地房地产市场的基础并未被动摇。

市建局不久前公布的数据显示，今年2月份发展商卖出的私宅单位只有170个，而1月份时还有316个。若包括执行共管公寓（EC）在内，2月份销售的单位数目也只有185个，1月份出售的单位总数是328个。

世邦魏理仕执行董事李晓和指出，在今年第一季，买家采取了观望的态度，而发展商也决定推出较少的新项目，这个现象自去年第四季开始，就相当普遍。他估计，第一季售卖的私宅单位，会低于1000个单位，比去年第四季的1449个单位低。

他指出，在2008年第一季推出售卖的1200个到1400个新的私人住宅单位中，并没有豪华项目，而唯一推出的高档项目，是在第9邮区的项目，尺价介于1500至1700元。

其余新项目，主要是在市区外围地区（如基里玛路和实龙岗路）和东海岸地区（直落古楼），尺价分别介于每平方英尺1000至1100元和850至900元。唯一对准大众私宅市场的是勿洛水池路的Waterfront Waves，每平方英尺的售价大约是800元。

李晓和指出，为第一季价格增长提供部分“支撑力量”的，包括一些已售罄的新项目，如Wilkie 80（50个单位，平均售卖尺价是1530元）、Cosmo（45个单位1100元）等。　

李晓和认为，类似的销售量下滑情况应该也出现在楼花转售（sub-sale）和转售（resale）市场。但第一太平戴维斯（Savills）行销与业务开发主管邱瑞荣认为，楼花转售和转售活动的交易量虽然没有2007年那么高，但08年第一季的数字同06年第一季的数字相差不远。

ERA助理副总裁林东荣指出，次贷风暴使得本地和海外买家及机构投资者都采取观望态度，在2007年的快速增长后，私宅市场仿佛进入某种“静止状态”。

高力(Colliers)国际研究与咨询部主管郑惠匀却认为，这显示市场尚未出现套利者惊慌抛售的情况，而卖家也不愿意降价出售单位。

但卓登国际(Chesterton)研究部主管陈瑞谨认为，交易量大幅度减少，价格还出现4.2％的涨幅，似乎不太符合传统对供需和价格的看法。

而昨天公布的价格预估数据则显示，在一月份，一般反映高档私宅市场的核心中央区（CCR），非有地住宅的价格涨幅估计是4.4％，反映中档市场的核心区以外的中央地区（RCR）涨幅为3.9％，反映大众私宅市场的中央区以外（OCR）则估计上涨4.8％。

莱坊（Knight Frank）研究部主管麦俊荣指出，核心中央区的价格涨幅是连续七个季度来最低的、另外两个市场的价格，也是在连续三个季度，上涨约7％以来，最低的涨幅。

在去年第四季，核心中央区的涨幅是7.5％、核心区以外的中央地区涨幅是7.7％、中央区以外的涨幅是7.0％。

仲量联行研究部主管蔡炎亮博士指出，最大的价格放缓，来自RCR市场，或许显示中档市场的价格已接近顶端，也表示中档买家对负面市场情绪可能比较敏感。大众私宅的需求相信来自打算提升的买家、受集体出售影响的人士和打算长期投资的富裕人士。　　

市建局也指出，预估数字是根据每一季的前十个星期呈交的房屋转让禁令(caveats)中的交易价格，再加上新销售的单位来统计。当局会在四个星期后公布完整数据。

市建局说，政府会继续严密观察价格走势，并提供即时的价格相关信息。而接下来的供应依然很充足，截至去年第四季，未竣工的私宅还有6万4900个单位，其中5万6100个预计会在2008年至2011年竣工。发展商尚未脱售的单位有3万8300个（占供应的59％）。

市建局因此呼吁买家在做出购屋选择时，将供应充足的信息列入考虑范围内。

全年私宅价格可能只增5至10％

市场人士也估计，接下来私人住宅价格的上涨幅度相信会进一步放缓。

麦俊荣认为，在接下来的三到六个月内，交易量稀少的情况还会持续，因此每个季度的价格涨幅可能会维持在5％以下，因此，2008年全年的全岛平均私宅价格，可能只增长5至10％。若经济在接下来继续萎缩，房屋价格将面对强大的下跌压力，甚至可能经历自2004年第一季以来，第一次的价格下滑。

在2007年，虽然私宅价格在第四季踩煞车，但全年的私人住宅价格还是向上冲了31.2％。　　

林东荣说，多数发展商，尤其是那些在过去两年内赚了一笔的人，相信在短期到中期，还能采取观望的态度，握紧手头上的新项目，不推出市场。虽然市场不乏买家，但投资者也正在寻找价廉物美的项目。他相信这样僵持的情况还会持续下去。

蔡炎亮认为，在接下来的9到12个月内，私宅价格应该还会持续疲弱，一旦美国市场复苏后，或许会使“买气”回升。

郑惠匀认为，接下来的一到两季，价格涨幅应该还有2至3％。虽然本地房地产市场，相信要到今年第三、四季，才能感受到美国经济放缓的完整冲击，但本地的F1赛车和综合度假胜地，带来的正面影响，相信将抵销部分的负面冲击，因此，价格在今年最后一季，也可能上涨5至8％。

陈瑞谨相信，市场在不久后，将进行调整。价格是否能持守，将视持有能力而定。

邱瑞荣认为，楼花转售和转售活动的交易量虽然没有2007年那么高，但08年第一季的数字同06年第一季的数字相似。他相信，除了大众私宅的价格接下来可能上涨外，中档和高档市场的价格应该会维持不变。　　

李晓和认为，以第二季度来看，虽然本地经济的基本面还属于健康水平，但若环球金融危机、股市调整和美国经济衰退等不稳定因素加剧，目前的谨慎情绪可能会维持下去，对新登场项目的反应，或许保持在“微温”的状态。

但若市场情绪能改善，销售量能增加，那私宅价格可能在第二季会出现1至2％的微小涨幅。

土地管理局减少上半年办公楼面供应

《联合早报》Apr 02, 2008

土地管理局(SLA)预期在今年上半年提供3万4200平方米的短期租赁办公室楼面，比去年上半年的4万3000平方米来得少。

截止目前，该局在今年第一季里推出供办公楼面使用的房地产也仅有一个，而去年第一季里推出的则有六个。

该局昨日发表的文告指出,它将在四及五月里推出更多房地产供改装为办公楼使用。

土地管理局土地与房产私租副署长张子贤表示，该局通过提供国有房地产来减缓对办公楼的需求的紧张情况的措施，取得一定的成功。在过去的投标都很受欢迎，租户也反映转租率很高。不论是市区，市郊或郊区的楼面都很受起步公司、跨国公司、金融机构或上市公司的欢迎。

他说，虽然可供转换为租用办公楼的国有房地产以季度来看是减少了，土地管理局仍会继续观察市场的反应，如果有需求，将会推出更多房地产供投标。　

土地管理局刚刚在3月底推出两个房地产供投标。其一是位于温斯德路（Winstedt Road)10号的前蒙克山中学（Monk's Hill Secondary School)校址供办公室楼面使用。另一个是位于樟宜路上段东696号的旧实乞纳樟宜联络所供综合用途。此两处投标将在4月16日及9日截止。

位于基里玛路（Guillemard Road）的前新加坡羽球馆也将在此计划下改为办公楼面，同时还包括饮食及餐馆用途。该局将在本月内进行招标。

受访房地产行分析师认为，土地管理局减低供应，可能是考虑到在未来数年内办公楼面的供应会增加的决定。

办公楼供应5年内会大增

莱坊（KnightFrank）研究部主管麦俊荣说，目前正在兴建的办公楼项目将在2009或2010年陆续推出，市场上的办公楼供应将会在5年内大量增加。土地管理局减少上半年办公楼的供应，显示政府考虑到这一点。特别是所推出的建筑需要经过大幅度的装修，等到完工时，市场上已有大量的供应，因此他们意识到市场对这样的建筑需求可能不会太高。

恒富行董事经理翁汉武受访时表示，在去年上半年办公楼面的预期需求是相当高。但是，市场的供应也不是很缺乏而需要很大量的供应来满足需求。现在兴建中的诸多大规模的办公楼项目会在未来几年内完工，到时，办公楼的供应将大幅度提高。再推出太多的空置建筑，需求可能不大。同时，这些建筑要进行装修后才能使用，因此成本也不低。

World Bank Forecasts Trying Times For Asian Economies In 2008

Source : Channel NewsAsia, 01 April 2008

Developing economies in East Asia, including Indonesia, Malaysia and Thailand, will grow at their slowest pace in six years in 2008, according to the latest forecast from the World Bank.

Logo of the World Bank is seen at the entrance to the building in Washington, DC

It said growth is being dragged down by the US sub-prime mortgage crisis and a drop in exports to the US.

The World Bank also warned that governments in the region need to be watchful over rising inflation.

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Trade with the US is key for most economies in East Asia, which is defined by the World Bank to include Southeast Asia and most other countries in the region, with the exception of Japan.

World Bank said these economies will be hurt by falling exports to the US and reduced spending in the wake of the sub-prime mortgage crisis.

Following the 10.2 percent expansion last year, the World Bank now expects developing East Asian economies to grow by 8.6 percent in 2008 – the slowest pace since 2002.

Growth in Indonesia is seen moderating to 6 percent and in Malaysia to 5.5 percent. But the World Bank warned that soaring food and fuel prices is now East Asia's biggest challenge. Economists said rising costs will hurt developing economies the most.

Joseph Tan, Senior Strategist, Fortis, said: "I think if you look at the problem with food inflation, it is certainly a lot less severe in Singapore, compared to some of the other countries. Obviously in Singapore, we have a fairly even income distribution pattern as compared to some of the other poorer countries in Asia.

"(With regards to) what the World Bank said about the regressive nature of subsidies, we don't have that problem quite as badly here in Singapore as compared to some of the other countries. The poor will certainly feel it a lot more when food prices start to go up because it is a much bigger part of their consumption basket, and I think that is going to affect the countries that are a lot poorer."

In its report, the World Bank also noted that Asia is more diversified, with economies like China becoming global growth poles, cushioning the impact from a US slowdown.

The World Bank expects the US economy to grow between 0.5 and 1.4 percent this year, while China is expected to expand at below 10 percent, down from 11.4 percent in 2007. - CNA/so

Property Market May Stay Quiet For Up To A Year

Source : The Straits Times, Apr 2, 2008

Home prices, sales could remain weak as US sub-prime concerns linger

A MONTH ago, property consultants were predicting that the cooling market would pick up after June. That optimism has fast drained away.

Consultants now expect home prices and sales to remain weak for up to a year from now, after official estimates yesterday confirmed that price growth was tapering off.

‘We can expect residential prices to continue weakening over the next 12 months’, in the light of the United States sub-prime debacle and an expected US recession, said Jones Lang LaSalle (JLL).

Other consultancies, such as CB Richard Ellis Research, believe price growth will slow further in the second quarter, to ‘1 per cent or 2 per cent’.

Home sales are also plunging as buyers retreat - and they are expected to stay low as sellers dig in their heels to wait out the slowdown.

New home sales were likely to have dropped in the first quarter to one of the lowest levels ever, second only to those recorded during the Sars period.

In the secondary market, sales have fallen to 2005 levels, according to estimates from Savills Singapore.

Mid-tier private properties on the city fringe, such as in Novena, Toa Payoh, Marine Parade and Queenstown, are likely to be hardest hit by falling buyer demand.

These areas saw the biggest slowdown in price growth in the first 10 weeks of the year, suggesting that prices in these regions may be peaking, said JLL.

Buyers in these areas have shallower pockets and are more sensitive to market sentiment, it added.

In the HDB segment, prices have stabilised at about $50,000 cash over valuation or less, said Mr Eugene Lim, assistant vice-president at ERA Realty Network.

‘Resale flats priced higher than that take much longer to sell or may not sell at all.’

Phillip Securities Research, meanwhile, aired concerns over the ‘huge supply’ of homes due to be completed in the next two years.

Supply is ‘expected to exceed the demand from buyers and result in a slide in local property prices from 2010′, it said.

HDB plans to release another 5,000 new build-to-order flats in the next six months. There are also 64,900 private homes in the pipeline, of which 90 per cent will be completed by 2011, while 60 per cent have yet to be sold.

Most experts believe, however, that confidence and demand will return by year-end - as long as the Singapore economy stays robust.

‘Sellers now take a while to sell their homes, but there are still buyers,’ said Mr Eric Cheng, the executive director of HSR property group.

‘Last year, it took maybe a month to sell a home. Now, it takes two months. But in 2000 or 2002, it took a year,’ he said.

Home Prices Hold Their Own, But Just Barely

Source : The Business Times, April 2, 2008

Analysts expect at least one quarterly dip this year

Despite the quieter market, home prices continued to edge up in the first quarter, although at a slower pace, latest flash estimates show.

The quarter-on-quarter rate of increase in the Urban Redevelopment Authority’s price index for private homes decelerated to 4.2 per cent in Q1 this year, after a 6.8 per cent gain in Q4 2007.

Some property consultants are now factoring in declines for at least one of the remaining three quarters of this year, as the full impact of the US economic slowdown bites into the local property market.

URA’s flash estimate also showed that regional sub-indices for non-landed private home prices posted smaller gains all-round in Q1 this year than they did in Q4 2007. However, the 4.8 per cent increase in the Outside Central Region (OCR) in Q1 outpaced gains of 4.4 per cent in the Core Central Region (CCR) and 3.9 per cent in the Rest of Central Region (RCR) - for the first time in four years.

Jones Lang LaSalle said prices are steady in the CCR, supported by deep-pocketed investors, but may be peaking in the RCR, while demand continues to be strong in the OCR as en bloc sellers pick up replacement homes in the suburbs, where prices are relatively more attractive.

In the public housing segment, the Housing & Development Board’s flash estimate shows that the HDB resale flat price index rose 3.4 per cent in Q1 over the preceding quarter, again slower than the 5.7 per cent increase posted in Q4 last year.

Knight Frank director (consultancy and research) Nicholas Mak said that in a worst-case scenario - assuming the Singapore economy contracts in the coming months - URA’s overall price index for private homes could post a full-year increase of zero to 5 per cent.

This factors in one quarter of decline, to the tune of 0.5 to 2.5 per cent, possibly towards the end of the year. Any decline in the index would be the first since Q1 2004, Mr Mak added.

Mr Mak’s best-case scenario is for a 10-15 per cent full-year gain in the index, with increases in all four quarters.

URA’s private home price index rose 31.2 per cent in 2007.

Colliers International’s director for research and consultancy Tay Huey Ying too said that the Singapore property market is likely to experience the full impact of the US economic slowdown by Q3 or Q4 this year.

In a worst-case scenario, URA’s private home price index may rise 8 to 10 per cent for the whole of this year, with possibly a decline in the fourth quarter of not more than 4 per cent, Ms Tay said.

In a best-case scenario - if the US enters a mild recession and recovers by the year-end and Singapore’s GDP growth rate is at the higher end of the MTI’s forecast of 4 to 6 per cent - the full-year increase in URA’s index could be 12-15 per cent.

For the next quarter, CB Richard Ellis is predicting a marginal rise in the index, of about one to 2 per cent from the Q1 level. It estimates that developers sold about 700-1,000 private homes in Q1, less than the 1,449 units they sold in Q4 last year.

Observers said that price gains in the OCR may have come from the secondary market, from completed developments like The Clearwater and Aquarius by the Park in the Bedok Reservoir area. The fact that a new launch in the area, Waterfront Waves, sold for an average price of about $800 psf could have encouraged the trend.

In the western part of Singapore, units sold at The Lakeshore and LakeHolmz in the Boon Lay vicinity may also have helped boost the sub-index for non-landed homes in the OCR, analysts suggest.

Knight Frank’s Mr Mak said that the 4.4 per cent gain in the CCR during Q1 was the lowest rate of increase in the past seven quarters.

As for the HDB resale price index, ERA Singapore assistant vice-president Eugene Lim predicts a full-year increase of not more than 10 per cent, compared with a 17.5 per cent jump in 2007.

Some demand may be taken away from the resale market because of a higher supply of new flats coming onstream, so resale prices may increase at a more measured pace in the coming months.

The HDB said in its release yesterday that the total planned Build-To-Order (BTO) supply of 6,100 new flats for Jan-Sept 2008 will surpass the annual BTO flat supply in 2007 (6,000 units) and 2006 (2,400 units).

HDB’s records show that in February 2008, about a quarter of resale flats were transacted at prices not exceeding $10,000 above market valuation.

Less Office Space For Release In H1

Source : The Business Times, April 2, 2008

SLA expects to offer only 34,200 sq m in GFA, down 20% from H1 last year

THE Singapore Land Authority (SLA) expects to release 34,200 square metres (368,125 square feet) in gross floor area (GFA) for office use in the first half of 2008. This is about 20 per cent less than the 43,000 sq m (462,847 sq ft) that was offered in H1 2007.

10 Winstedt Rd: The former Monk's Hill Secondary School in the Newton area has a GFA of 7,700 sq m and a guide rent of $147,300 a month

SLA director (land operations - private) Teo Cher Hian said that while the tenders for this office space has been ‘well-received with strong bids submitted’, SLA will continue to monitor market take-up and identify more sites with office use, ‘if demand is prevalent’.

Just launched is the former Monk’s Hill Secondary School at 10 Winstedt Road in the Newton vicinity which has a GFA of 7,700 sq m (82,882 sq ft) and a guide rent of $147,300 a month.

This works out to about $1.80 psf per month.

Cushman and Wakefield managing director Donald Han believes that this site is likely to see competitive bidding because of its location.

Already, Ascott Group has moved its Ascott Centre of Excellence to the nearby former Anthony Road Girls’ School and Anglo-Chinese Primary School is understood to have leased a state-owned property at 12 Winstedt Road.

And Mr Han says that 10 Winstedt Road is ‘one of the better sites released in the last 12 months’.

Based on the guide rent of $147,300 per month or about $1.80 psf per month, Mr Han believes that the breakeven rent for the potential developer would be about $2.10 psf per month after factoring construction costs for retro-fitting the property at around $100 psf.

‘The developer could ask for a monthly rent of about $5 psf,’ he added.

However, as Mr Han noted, the general office rental market has begun to show signs of ‘moderation’ of late with landlords ‘reducing their rental expectations’.

And this could affect the demand for retro-fitted state-owned offices.

‘If you price these (retro-fitted state-owned) properties in the $5-$6 psf per month range, you may not see demand coming from users looking to move out of the CBD fringe, where landlords are already trying to retain their tenants,’ said Mr Han.

And as for prime office space, he notes that the financial sector also appears to have ’stabilised in terms of growth’.

‘People looking at these state-owned buildings are usually those that have low budgets for rent.’

Those still looking for a bargain can turn to Jerry Tan, who tendered and was awarded the 145,431 sq ft (GFA) site at 195 Pearl’s Hill Terrace with a bid of $53,501 per month or about 40 cents psf per month last year.

Mr Tan revealed that while units have already been leased out for over $4 psf per month, he intends to start offering units at $3.50 psf per month.

To date, Mr Tan said, he has about five tenants but he hopes to attract more with the lower rents. One of the drawbacks is that the lease for the building is only for three years but Mr Tan said: ‘Start-ups don’t usually intend to sign long leases.’

Flatted Factory Rents Boosted By Office Space Crunch Too

Source : The Business Times, April 2, 2008

BUSINESS park space is not the only industrial sector benefiting from the spillover effects of the office space crunch.

According to a report by Colliers International, the light industrial factory segment is also beginning to experience some of this spillover effect.

Monthly gross rents of prime conventional flatted factories in central Singapore for Q108 increased by 11.8 per cent for ground floor space and 10.6 per cent for upper floor space on a quarter-on-quarter (QoQ) basis to $2.36 psf and $1.77 psf respectively.

The QoQ increase in rents for Q108 were also higher than the increases in Q407 which saw ground floor space and upper floor space both increase by 6 per cent. Colliers director (industrial sales and leasing) Tan Boon Leong said demand from ‘qualifying office users’ had resulted in the increased popularity of conventional flatted factories in the Bukit Merah/Alexandra Road locality. He added: ‘The proximity to the CBD has made these industrial properties an ideal alternative for qualifying office users, especially those who do not require exceptionally high building specifications, and are looking for cheaper business premises.’

Colliers believes some of these users are likely to come from the service industries including design agencies, IT-related support firms, and engineering firms. Mr Tan said that demand for such space was so high that newer and more modern flatted factories such as Cendex Centre and E-Centre commanded average monthly gross rents of $3.20-$4 psf in Q108.

Cendex Centre, which is on Lower Delta Road, also saw units selling at an average of $610 psf, with the highest price of $680 psf achieved in February.

As such, Colliers projects rents for conventional factories to increase by up to 15 per cent for the rest of 2008. High-specification industrial space and business park space will, however, remain star performers in the industrial sector with rents expected to rise up to 20 per cent for the rest of the year due to the spillover demand from the office sector.

Average monthly gross rents for high-specification industrial space rose 16 per cent in the quarter to $3.98 psf with popular space in Alexandra Road and Changi Business Park commanding average monthly gross rentals of around $4.80 psf.

Strong demand for logistics space from third party logistics service providers and industrialists also saw average monthly gross rents of prime warehouse space rise 13 per cent for ground floor space and 7.5 per cent for upper floor space in the quarter to $2.35 psf and $1.72 psf respectively.

Home Prices Growing, But Less Sharply

Source : The Straits Times, Apr 2, 2008

HOME seekers waiting for property prices to fall in a sluggish market were disappointed by numbers released yesterday.

Government estimates showed that the prices of private and Housing Board homes continued to rise in the first three months of the year to near their 1996 peaks.

But growth was markedly lower than before and is likely to slow further in coming months, experts said.

Some even suggested that home prices may start to ease later this year - for the first time in four years - if the Singapore economy brakes more sharply than expected.

Mr Nicholas Mak, director of research and consultancy at Knight Frank, was among industry watchers who had expected prices to plateau or even dip in the first quarter, after developers reported dismal sales of new homes in January and February.

But prices held stubbornly, backed by a still healthy economy, some new launches at benchmark prices and the reluctance of sellers to lower asking prices.

However, the number of home sales plunged from last year, leading consultants to warn that yesterday’s price figures are based on fewer deals and may not be representative of the whole market.

They added that buyers willing to take the plunge now are mostly genuine occupiers, with speculators having almost completely exited.

Private home prices climbed 4.2 per cent in the first 10 weeks of the year, down from 6.8 per cent in the previous quarter and the smallest rise since 2006. Suburban home prices gained the most, rising 4.8 per cent.

HDB resale flats also saw a smaller increase in prices: 3.4 per cent, compared with 5.7 per cent previously.

The ‘weaker than expected’ growth comes amid continued volatility in global stock markets and a weaker Singapore market outlook, said Mr Chua Yang Liang, Jones Lang LaSalle’s head of research for South-east Asia.

But Ms Tay Huey Ying, director of research and consultancy at Colliers International, called the price growth ‘very encouraging’, given the few transactions.

Property consultants took the chance yesterday to cut their forecasts for price growth for the whole year.

Most now predict single-digit rises compared with their earlier estimates of growth between 10 and 20 per cent. Last year, private home prices soared 31 per cent while HDB resale prices jumped 17.5 per cent.

More Temp Office Space On Offer Soon

Source : TODAY, Wednesday, April 2, 2008

More than 360,000 sq ft at Badminton Hall area in Guillemard to be released

IN A bid to help alleviate an office space crunch, the Singapore Land Authority (SLA) hopes to release another 368,000 square feet in gross floor area for temporary conversion by the middle of the year. But that is still 20 per cent less than what was released in the same period last year.

Mr Teo Cher Hian, director of private land operations at SLA, said this shortfall is due to there being fewer state properties left to convert.

The latest site to be offered this month will be the Singapore Badminton Hall and Association’s premises at Guillemard Road.

The state land agent has already released two properties for tender this year - the former Monk’s Hill Secondary School and Siglap-Changi Community Centre.

Mr Teo said the SLA will monitor market take-up and identify more sites if demand merited.

Average office rents shot up over 50 per cent last year. However, Urban Redevelopment Authority statistics show potential new office supply of around 10 million square feet over the next five years when some major new developments are complete.

Mr Colin Tan, research head at Chesterton International, believes SLA is probably being cautious. “It’s probably to relieve the current squeeze. But have they done studies to see if releasing now will affect supply, say, two years down the road?”

A Colliers International report shows rental growth for prime office space moderating in the past three months, rising a more modest 3.2 to 6.9 per cent quarter-on-quarter.

Instead, it said industrial rents are rising faster - some 16 per cent in the past quarter. That’s because more companies had turned to high-specification industrial space as an alternative amid rising office rents.

Citibank, DBS Bank and Standard Chartered Bank have announced they will relocate some of their operations to built-to-suit office complexes in Changi Business Park.

Mr Tan Boon Leng, Colliers’ director for industrial sales and leasing, said: “It is expected that more banks are likely to jump on this bandwagon soon.”

Colliers expects rental for high specification industrial space to rise 20 per cent for the rest of the year.

But industrial rents are coming from a low base. Knight Frank’s research head, Nicholas Mak, said: “Rentals in the industrial sector are still single digits, $3 to $4 per square foot per month, compared to $10 to $18 per square foot in the office sector. So, there is obviously more upside for growth in percentage terms.”

HDB Loans Out Of Reach

Source : TODAY, Wednesday, April 2, 2008

Income ceiling for extended family scheme is too low

My husband and I are buying a resale flat. We are first-time applicants and our combined monthly income is below $8,000, so we would qualify for the Housing and Development Board (HDB) concessionary loan.

To encourage first-time applicants and young couples to stay with their parents, the HDB recently introduced the extended family scheme, with a new combined income limit of $12,000. We intend to stay together with my parents-in-law to enjoy the $40,000 grant.

However, although the HDB has increased the combined income limit to $12,000 for the purpose of enjoying the $40,000 grant, it has not changed the combined income criteria for the eligibility of the concessionary loan, which remains at $8,000.

So if we want to stay with my husband’s parents and enjoy the grant, we will not qualify for the concessionary loan as our combined income (including what my husband’s parents earn) would exceed $8,000.

This is counter-productive and does not encourage young couples like us to stay with, or near, our parents.

Can the HDB relook into this and adjust the combined income criteria for the extended family scheme? This will help realise the objective of forging strong extended family ties.

S'pore Home Prices Slow After Record Year

Source : The Straits Times, Apr 1, 2008

SINGAPORE private home prices rose at the slowest in more than a year in the first quarter of this year, reflecting a general slow down in the property market.

Prices of private homes gained 4.2 per cent in the first three months, after rising 6.8 per cent in the previous quarter, according to early quarterly estimates released by the Urban Redevelopment Authority (URA) on Tuesday.

Prices of non-landed private homes in the core central region of Singapore such as Orchard Road and Sentosa Cove rose by 4.4 per cent, compared with a 7.5 per cent rise in the previous quarter.

Non-landed private home prices rose 3.9 per cent in the rest of central region and 4.8 per cent in areas outside the central region or suburban areas. In the previous quarter, these prices went up by 7.7 per cent and 7 per cent respectively.

Private home prices jumped 31 per cent last year on the back of a booming economy - to an 11-year high. The market has since slowed considerably in the wake of the global credit crunch and the jittery stock market.

The URA on Tuesday advised prospective home-buyers that there is ample supply of private housing in the pipeline.

'As at the fourth quarter of 2007, there are about 64,900 private residential units in the pipeline, of which about 56,100 new private housing units are expected to be completed between 2008 and 2011,' said the URA.

About 38,300 units, or 59 per cent of the total, haven't been sold, the authority said.

Singapore's residential property market outpaced increases in China and Bulgaria, researcher Global Property Guide said in a Dec 19 report. Prices excluding inflation climbed 24 per cent, the researcher said.

The figures released by the authority are preliminary and based on transaction prices lodged during the first 10 weeks of the quarter. The statistics will be updated four weeks later, the authority said in today's statement.

The URA will release the full first quarter real estate statistics in four weeks' time.

CCT To Sell S$280m Worth Of 5-Year Convertible Bonds

Source : Channel NewsAsia, 01 April 2008

CapitaCommercial Trust (CCT) is planning to sell S$280 million worth of five-year convertible bonds.

The bonds are being targeted at mainly institutional investors.

CCT said it could issue more convertible bonds to raise another S$90 million. This will take the total amount raised to S$370 million.

The Trust said it could also pay cash in lieu of issuing new units on conversion of the bonds.

It will be using the proceeds to refinance its short-term loans and pay for acquisitions and investments.

Standard Chartered Bank has been appointed as the financial adviser. - CNA/so

First Signs Of Housing Market Slowdown

Source : TODAY, Wedenesday, 02 April 2008

AFTER property fever hit euphoric levels last year, flash estimates from the Housing and Development Board and the Urban Redevelopment Authority (URA) show the growth in real estate is slowing down significantly.

The index for the private home market showed prices rose 4.2 per cent in the first three month, down from the last quarter’s 6.8 per cent growth.

And looking ahead, some property watchers are taking a more subdued stand — expecting private property prices to inch forward a modest 1 to 2 per cent in the second quarter, and 5 to 10 per cent for the whole of this year. Should the economy contract on the back of a United States recession, home prices could fall for the first time since 2004, said an analyst.

But, PropNex chief executive officer Mohd Ismail, for one, is optimistic. While foreign interest last year buoyed the property market in the downtown and core central region, he said, strong domestic demand is expected to drive growth in the mass market.

He noted how condominiums in outlying estates such as Woodlands and
Jurong East are averaging $550 to $600 per square foot (psf), which is “still very affordable pricing that has moved up marginally from before the boom last year”. He predicted: “The mass market will continue to perform with prices expected to well exceed 10 per cent for 2008.”

He attributed the first quarter’s results to a low volume of transactions, due to many developers holding back property launches and sellers holding on to their properties.

ERA noted that after a fast-paced 2007, the private housing market seems to have come to “some form of standstill”.

“The lower overall price increase indicates that buyers have turned cautious in view of continued concerns about the US economy, sub-prime crisis and the
erratic stock market,” said ERA’s assistant vice-president Eugene Lim.

Knight Frank, which expects the rate of increase of private home prices to remain below 5 per cent in the first three quarters, outlined the most sobering scenario.

“If the economy were to contract in the coming months, home prices would face strong downward pressure and could experience their first decline since first quarter 2004,” said its director of consultancy and research Nicholas Mak.

Flash estimates are compiled based on transaction prices given in caveats lodged in the first ten weeks of the quarter, supplemented by information on the number of new units sold.

More complete statistics will be updated four weeks later and the URA notes, the difference between the flash estimate and actual price changes could be significant when the change is small. TODAY

Singapore Home Prices Rise At Slower Pace In First Quarter

Source : Channel NewsAsia, 01 April 2008

Prices of HDB resale flats rose 3.4 percent in the January to March period over the previous three months, according to flash estimates released by the HDB. The increase was lower than the 5.7 percent pace in the fourth quarter.

The slower rise in resale flat prices comes as no surprise to industry watchers who attribute it to the cautious sentiment in the overall property market.

They say buyers are not willing to fork out high cash over valuation, in view of the additional supply of flats in the pipeline.

So going by the current market sentiments, property agents say a 10 percent price increase for HDB resale flats this year is unlikely. Prices for HDB resale flats rose 17.5 percent last year.

But the showing for the first quarter isn't bad, say property agents.

Ku Swee Yong, Savills' director for international marketing, said: "Year on year, it (Q1 2008 Resale Price Index) is still up about 21 points, which is about 20% growth... that's pretty strong. Buyers are still willing to pay above S$10,000 cash over valuation. That also represents very solid real demand..."

The slowdown in price increases in the private residential sector is also more noticeable in the first quarter this year. Prices rose 4.2 percent, compared to 6.8 percent in the last quarter.

The dip in private home price gains is the biggest quarterly drop in more than seven years since the third quarter of 2000 when prices fell by over 4 percent.

Market watchers say thin sales volumes in the quarter and developers' resistance to cutting prices may have helped sustain the price increases.

Cushman & Wakefield's Donald Han said: "It's quite encouraging on the basis that we had very low volume in terms of transaction numbers for the first quarter, something like over 800 units were transacted in the first quarter compared to the average of 3,000 to 4,000 sold in 2007 on a per quarter basis."

The slowdown in price gains was seen across all districts in Singapore, covering the high-end as well as the mass market segments.

According to the URA, prices of non-landed private residential properties increased by 4.4% on quarter in the core central region in the first quarter, slower than a 7.5% increase in the previous three months.

Prices of properties in the rest of the central region increased by 3.9% in the quarter, compared with a 7.7% increase in the previous period. Outside the central region, prices increased by 4.8%, slower than a 7% rise previously.

Analysts expect transaction volume of residential properties to be thin for the next three to six months and price increases to be moderate in the next quarter.

Donald Han, managing director of Cushman & Wakefield (Singapore), forecasts a 3% to 4% rise in the next quarter.

He expects the property market to be active again, probably towards the later half of this year when stability returns to the credit crunch market.

On the rental market, analysts say it will continue to perform well in view of the large influx of foreign workers to be expected in Singapore when the two integrated resorts are ready in the next two years. - CNA/ir

Upper Boon Keng, Ang Mo Kio Hawker Centres Closed For Upgrading

Source : Channel NewsAsia, 01 April 2008

Two markets and hawker centres will enjoy a new lease of life under the National Environment Agency's Hawker Centres Upgrading Programme (HUP).

Artist's impression of the upgraded hawker centre at Block 160 & Block 162 of Ang Mo Kio Avenue 4

Located at Block 160 and Block 162 of Ang Mo Kio Avenue 4, and Block 17 of Upper Boon Keng Road, the centres are closed from 1 April until the end of the year for upgrading works.

The existing layout at the Ang Mo Kio Avenue 4 market and food centre will be reconfigured.

There will be more ramps and space for handicapped and elderly persons. The total seating capacity will also be increased.

Upgrading works will also see the cooked food stalls equipped with new mechanical exhaust systems.

Artist's impression of the upgraded hawker centre at Block 17 of Upper Boon Keng Road

The hawker centre at Upper Boon Keng Road will enjoy a new design theme of vibrant colours and textures.

There will also be a feature which allows more natural lighting, enhancing the vibrant interior of the centre.

Alfresco dining areas will be introduced to provide patrons with more seats and will serve as an alternative dining venue within the centre.

Patrons of both centres can look forward to an improved environment when the upgraded centres re-open for business in the first quarter of 2009.

Most stallholders from both hawker centres have chosen to take a break during the upgrading period. Those who have chosen to continue business will be at alternative stalls at other hawker centres. - CNA/so

Private Home Price Up But At Slower Rate

Source : The Business Times, April 1, 2008

URBAN Redevelopment Authority's latest flash estimate shows that the price index for private homes in Singapore rose 4.2 per cent in Q1 2008 over the preceding quarter. This was lower than the 6.8 per cent quarter-on-quarter rise registered in Q4 last year.

URA also released today the flash estimates of the price changes in the three geographical regions for Q1 2008. Prices of non-landed private homes rose 4.4 per cent in Core Central Region (comprising the prime districts 9, 10 and 11 as well as the Downtown Core and Sentosa areas) , 3.9 per cent in Rest of Central Region and 4.8 per cent in Outside Central Region during the quarter over the preceding three months.

These increases compare with quarter-on-quarter gains of 7.5 per cent in Core Central Region, 7.7 per cent in Rest of Central Region and 7.0 per cent in Outside Central Region in Q4 last year.

In the public housing market, HDB's flash estimate showed the resale flat price index rose 3.4 per cent in Q1 2008 over the preceding quarter. This was lower than the 5.7 per cent increase in Q4 2007.