Source : The Business Times, September 25, 2008
SINGAPORE GRAND PRIX
AS the economic outlook dims, Singapore is switching on floodlights to brighten its future.
The city stages Formula One's first night race this coming Sunday under the glare of 1,600 lamps that will generate four times the brightness of a regular sports stadium.
Singapore, girding for a possible recession, is paying about US$200 million over five years for the rights to host the event, tapping the glitz of the world's most-watched motor races to promote itself as something more than a financial hub.
'Singapore has always been known as a good international business centre,' S Iswaran, Senior Minister of State for Trade and Industry, said in an interview. 'What we want to do is also raise Singapore's profile as a global city with great lifestyle, buzz, vibrancy.'
The race is the latest attraction for the South-east Asian city, including two casino resorts and the first Youth Olympic Games in the next thee years. The world's biggest ferris wheel - the Singapore Flyer - opened this year, towering over the pit lanes that will teem with the mechanics and drivers of Ferrari, McLaren and BMW.
Hosting major sports events is part of Singapore's strategy to diversify the economy from its traditional manufacturing base and to attract tourists, economists say. The F1 effect will be felt over years and won't be measured by the experience of this weekend's race alone.
'Singapore wants to become a global city and events like these are needed to make it one,' said Song Seng Wun, an economist at CIMB-GK Securities Pte in Singapore. 'The F1 race is just another piece in a big jigsaw puzzle.'
The arrival of F1 pacesetter Lewis Hamilton and world champion Kimi Raikkonen coincides with one of the closest championships - and a financial slowdown that's pushed Singapore to cut its growth forecast to between 4 per cent and 5 per cent this year from the 7.7 per cent pace in 2007.
'The financial turmoil throws up quite a lot of uncertainty, but tickets have sold out,' said Vishnu Varathan, a regional economist at Forecast Singapore. 'Retailers will probably see more restrained spending.'
Mr Iswaran expects Formula One to deliver $100 million of extra tourism revenue, with about half the 100,000 people involved in the Grand Prix flying in from overseas.
The closeness of the F1 title race - McLaren driver Hamilton leads Ferrari's Felipe Massa by one point with five of 18 races to go - may intensify the spotlight on Singapore.
'Just like the Beijing Olympics, all eyes will be on Singapore,' said Michelle Denise Wan, a spokeswoman for the Ritz-Carlton hotel in the Marina Bay area, where rooms sold out by July even with a minimum four-night stay.
Not everyone is getting a slice of the windfall, including some retailers closest to the action. Road closures and entry restrictions to the race area has Melvin Yap considering shutting his watch store in Millenia Walk.
'Things are going to be really bad,' said Mr Yap, sales director at Precious Time. 'Our regular shoppers won't be coming here.'
Formula One, with about 150 million viewers per race, is becoming the sport of choice for cash-rich nations. Bahrain added a Grand Prix in 2004, while Abu Dhabi is paying a record US$45 million for rights to host its first race next year, according to Formula Money, which tracks the sport's finances. South Korea and India will add F1 races in 2010. -- Bloomberg
Thursday, September 25, 2008
Lehman's Failure Won't Affect Projects: CES
Source : The Business Times, September 25, 2008
The 2 condos are substantially sold; funds to complete projects secured
CHIP Eng Seng (CES) said its two joint-venture projects with a real estate equity fund managed by Lehman Brothers are unaffected by the collapse of the US investment bank.
CityVista: The 70-unit project at Peck Hay Rd is already 54% sold at an average $2,550 psf, while The Parc Condo at West Coast Walk is 95% sold at an average price of $880 per square foot
Its JV partner is Lehman Brothers Real Estate Partners II (LBREP II), a US$2.4 billion fund that was closed in 2005. Only a fraction of that sum - some US$400 million - came from Lehman Brothers and its employees.
CES had formed a 50-50 JV with LBREP II's wholly owned special purpose vehicle WM Mauritius Holdings for two high-rise freehold condominium projects.
But a reassuring fact is that the 695-unit The Parc Condominium at West Coast Walk is already 95 per cent sold at an average price of $880 per square foot (psf). The 70-unit CityVista at Peck Hay Road is 54 per cent sold at an average $2,550 psf.
All instalments of purchase money and construction loans have since been deposited into the Project Account of the building projects as stipulated by the Housing Developers Act.
'With financing being secured with the bank, funds needed to finish the whole project was already secured. Not to mention that the projects were launched successfully and the deposits we collected are more than enough to fund the two projects till completion,' CES chief executive Raymond Chia told BT.
The two projects are expected to be completed by the second half of 2010.
CES teamed up with Lehman to bid for four projects in total. Two tenders did not succeed.
Asked if Lehman's collapse will cause CES to search for a new JV partner for future projects, Mr Chia said CES is not short of choice, having landed on the radar screen of equity funds since its partnership with the Lehman fund in 2006. CES has since received enquiries from large funds on opportunities to work together on projects in Singapore and Vietnam, Mr Chia said.
But he noted that CES can take on larger projects on its own now and, hence, has more options besides JVs. There also is the support of its 25 per cent shareholder Citadel Equity Fund, part of the Chicago-based Citadel Investment Group. Both are working together on a freehold condo project Grange Infinite, which is 100 per cent sold.
While Lehman's failure may hurt US commercial property, its impact here is likely to be cushioned.
Lehman Brothers is believed to own a 45,000 square feet building at Clemenceau Avenue worth about $80 million. Its managed fund teamed up with Australia's Lend Lease in a 75:25 JV to buy Paradiz Centre in Selegie Road for $138 million in 2006.
Paradiz Centre is being redeveloped and slated for completion by the end of this year. But it is understood that Lehman's collapse will not affect the fund that owns this project and Lend Lease has pre-emptive rights to buy out Lehman's stake in the venture.
Lehman Brothers also occupies minimal amount of office space here. It currently takes up about 40,000 square feet of office space in Suntec City Office Tower Five, a mere 3.1 per cent of the total Suntec City office space of 1.29 million square feet, according to DMG & Partners Securities.
Its other assets have been divested. The office building at 71 Robinson Road which Lehman jointly owned with Kajima Overseas Asia in April was sold to a German fund for $743.8 million, higher than some $613.4 million they spent on the land and redevelopment. Lehman sold Novotel Clarke Quay last year to CDL Hospitality Real Estate Investment Trust at $219.8 million, double the amount it spent on it.
The 2 condos are substantially sold; funds to complete projects secured
CHIP Eng Seng (CES) said its two joint-venture projects with a real estate equity fund managed by Lehman Brothers are unaffected by the collapse of the US investment bank.
CityVista: The 70-unit project at Peck Hay Rd is already 54% sold at an average $2,550 psf, while The Parc Condo at West Coast Walk is 95% sold at an average price of $880 per square footIts JV partner is Lehman Brothers Real Estate Partners II (LBREP II), a US$2.4 billion fund that was closed in 2005. Only a fraction of that sum - some US$400 million - came from Lehman Brothers and its employees.
CES had formed a 50-50 JV with LBREP II's wholly owned special purpose vehicle WM Mauritius Holdings for two high-rise freehold condominium projects.
But a reassuring fact is that the 695-unit The Parc Condominium at West Coast Walk is already 95 per cent sold at an average price of $880 per square foot (psf). The 70-unit CityVista at Peck Hay Road is 54 per cent sold at an average $2,550 psf.
All instalments of purchase money and construction loans have since been deposited into the Project Account of the building projects as stipulated by the Housing Developers Act.
'With financing being secured with the bank, funds needed to finish the whole project was already secured. Not to mention that the projects were launched successfully and the deposits we collected are more than enough to fund the two projects till completion,' CES chief executive Raymond Chia told BT.
The two projects are expected to be completed by the second half of 2010.
CES teamed up with Lehman to bid for four projects in total. Two tenders did not succeed.
Asked if Lehman's collapse will cause CES to search for a new JV partner for future projects, Mr Chia said CES is not short of choice, having landed on the radar screen of equity funds since its partnership with the Lehman fund in 2006. CES has since received enquiries from large funds on opportunities to work together on projects in Singapore and Vietnam, Mr Chia said.
But he noted that CES can take on larger projects on its own now and, hence, has more options besides JVs. There also is the support of its 25 per cent shareholder Citadel Equity Fund, part of the Chicago-based Citadel Investment Group. Both are working together on a freehold condo project Grange Infinite, which is 100 per cent sold.
While Lehman's failure may hurt US commercial property, its impact here is likely to be cushioned.
Lehman Brothers is believed to own a 45,000 square feet building at Clemenceau Avenue worth about $80 million. Its managed fund teamed up with Australia's Lend Lease in a 75:25 JV to buy Paradiz Centre in Selegie Road for $138 million in 2006.
Paradiz Centre is being redeveloped and slated for completion by the end of this year. But it is understood that Lehman's collapse will not affect the fund that owns this project and Lend Lease has pre-emptive rights to buy out Lehman's stake in the venture.
Lehman Brothers also occupies minimal amount of office space here. It currently takes up about 40,000 square feet of office space in Suntec City Office Tower Five, a mere 3.1 per cent of the total Suntec City office space of 1.29 million square feet, according to DMG & Partners Securities.
Its other assets have been divested. The office building at 71 Robinson Road which Lehman jointly owned with Kajima Overseas Asia in April was sold to a German fund for $743.8 million, higher than some $613.4 million they spent on the land and redevelopment. Lehman sold Novotel Clarke Quay last year to CDL Hospitality Real Estate Investment Trust at $219.8 million, double the amount it spent on it.
世界房地产价格 今年下跌国家剧增
Source : 《联合早报》September 25, 2008
原本形势一片大好的世界房地产价格，因为风向转变而在过去一年开始回落。一项报告显示，2007年中，只有五个国家的房地产价格出现年比跌幅，但到了2008年中，却有多达21个国家的房地产价格比去年同时期下滑。
这个由环球房地产指南(Global Property Guide)发表的报告显示，在调整了通货膨胀后，中国上海是过去一年来屋价最快速上涨的城市，涨幅高达27.28％。香港、新加坡、澳洲和菲律宾的房地产价格也出现年比增长。不过，欧美国家的房地产价格大多不振，带领几乎整个欧美地区的楼价下滑。
在该公司调查的33个国家当中，位于俄罗斯西边的拉脱维亚（Lativia)是过去一年来，全世界楼价下跌幅度最大的国家。它的首都里加（Riga）的楼价实际下跌了33.08％。在这之前，该地的楼价却是全世界增长最快的城市之一，去年的年比实际涨幅达到25.15％。
美国是另外一个楼价跌得最重的国家，美国的Case Shiller房屋价格指数显示，美国主要城市的楼价在2007年第二季至2008年第二季之间，下跌了15.4％。
虽然美国政府刚刚在几天前宣布，它计划推出一个价值7000亿美元的拯救金融体系配套，来购买所有的不良资产，以纾解信贷紧缩的压力，但是一般相信这还是无法阻止楼价的下滑。相反的，这场起源于美国的楼市灾难，已“传染”了全球多个国家。
英国虽然实施了一些新措施来振兴楼市，包括提高印花税的豁免额，以及协助第一次买房者负担房贷等，但楼价还是在过去一年来下跌了6.33％。类似的情况也发生在西班牙、爱尔兰、韩国等地。尽管有“救市”配套，仍无法扭转楼价的跌势。
季度数据显示 情况正在恶化
环球房地产指南的报告书说：“季度的数据显示情况正在恶化，在调整了通胀后，33个国家／城市中，只有九个的楼价没有下跌。”
新加坡就是其中一个例子，从去年第三季起，本地楼市已露出更多的放缓现象。
根据市区重建局的数据，新加坡的房地产价格指数由2007年第二季的147.8点，攀升至2008年第二季的177.5点，上涨了20.09％。但环球房地产指南说，调整了通胀率后，新加坡过去一年的楼价只增长了11.64％。
从季度数据来看，新加坡的楼价在调整了通胀后，其实已开始走下坡。市建局的数据显示，新加坡的房地产价格指数由2008年第一季的177.2点微涨至第二季的177.5点，上升了0.17％，但一旦调整通胀率后，实际下跌了1.23％。
香港在调整了通胀率后，季比楼价也下跌了1.8％。不过，上海和斯洛伐克(Slovakia)仍然维持2.2％和4.03％的季比增长。
原本形势一片大好的世界房地产价格，因为风向转变而在过去一年开始回落。一项报告显示，2007年中，只有五个国家的房地产价格出现年比跌幅，但到了2008年中，却有多达21个国家的房地产价格比去年同时期下滑。
这个由环球房地产指南(Global Property Guide)发表的报告显示，在调整了通货膨胀后，中国上海是过去一年来屋价最快速上涨的城市，涨幅高达27.28％。香港、新加坡、澳洲和菲律宾的房地产价格也出现年比增长。不过，欧美国家的房地产价格大多不振，带领几乎整个欧美地区的楼价下滑。
在该公司调查的33个国家当中，位于俄罗斯西边的拉脱维亚（Lativia)是过去一年来，全世界楼价下跌幅度最大的国家。它的首都里加（Riga）的楼价实际下跌了33.08％。在这之前，该地的楼价却是全世界增长最快的城市之一，去年的年比实际涨幅达到25.15％。
美国是另外一个楼价跌得最重的国家，美国的Case Shiller房屋价格指数显示，美国主要城市的楼价在2007年第二季至2008年第二季之间，下跌了15.4％。
虽然美国政府刚刚在几天前宣布，它计划推出一个价值7000亿美元的拯救金融体系配套，来购买所有的不良资产，以纾解信贷紧缩的压力，但是一般相信这还是无法阻止楼价的下滑。相反的，这场起源于美国的楼市灾难，已“传染”了全球多个国家。
英国虽然实施了一些新措施来振兴楼市，包括提高印花税的豁免额，以及协助第一次买房者负担房贷等，但楼价还是在过去一年来下跌了6.33％。类似的情况也发生在西班牙、爱尔兰、韩国等地。尽管有“救市”配套，仍无法扭转楼价的跌势。
季度数据显示 情况正在恶化
环球房地产指南的报告书说：“季度的数据显示情况正在恶化，在调整了通胀后，33个国家／城市中，只有九个的楼价没有下跌。”
新加坡就是其中一个例子，从去年第三季起，本地楼市已露出更多的放缓现象。
根据市区重建局的数据，新加坡的房地产价格指数由2007年第二季的147.8点，攀升至2008年第二季的177.5点，上涨了20.09％。但环球房地产指南说，调整了通胀率后，新加坡过去一年的楼价只增长了11.64％。
从季度数据来看，新加坡的楼价在调整了通胀后，其实已开始走下坡。市建局的数据显示，新加坡的房地产价格指数由2008年第一季的177.2点微涨至第二季的177.5点，上升了0.17％，但一旦调整通胀率后，实际下跌了1.23％。
香港在调整了通胀率后，季比楼价也下跌了1.8％。不过，上海和斯洛伐克(Slovakia)仍然维持2.2％和4.03％的季比增长。
Wednesday, September 24, 2008
Lower Top Bids Expected For Mountbatten Site
Source : The Business Times, September 24, 2008
Analysts also doubt need for more transitional offices
A 15-YEAR leasehold transitional office site in Mountbatten Road, launched yesterday, is expected to fetch top bids that are 15-40 per cent lower than a nearby site sold in January this year, according to some property consultants.
Some analysts again questioned the need for the government to keep releasing transitional office sites, given that a substantial supply of Grade A office space will be completed from 2010.
Separately, a UBS Investment Research report dated yesterday says that a 1.5-6 per cent cut in the number of jobs in Singapore's financial industry could lower UBS's forecast of monthly prime office rents from $16.20 per square foot (psf) currently to $8.60-9.50 psf in 2012 - a 41-47 per cent slide. This is more pessimistic than an earlier UBS forecast of a 34 per cent fall to $10.50 psf by 2012.
UBS also cited Urban Redevelopment Authority (URA) data showing that median office rents in the CBD had fallen in July. Monthly median rents in the Raffles Place, Tanjong Pagar and Cecil Street areas are now $12.50 psf, $7.28 psf and $6.50 psf, compared with $14.98 psf, $7.49 psf and $6.65 psf in June.
Cushman & Wakefield managing director Donald Han reckons that the highest bid for the Mountbatten Road plot will be $55-59 psf per plot ratio (ppr) - about 15-20 per cent less than for the earlier plot, which fetched $69.17 psf ppr. He said that the latest plot is farther from the future Mountbatten MRT Station - compared to the earlier plot which is just next to the station - and that sentiment in the office market is weaker now.
CB Richard Ellis executive director Li Hiaw Ho puts the range of top bids at $40-50 psf ppr - a 28-42 per cent decline from the price fetched by the nearby plot. Mr Li bases his estimate on the assumption of average gross monthly rent of $5 psf for a new office development on the site and a 10 per cent annual net return for the investor, given the short period of 13-14 years to recoup the investment.
Jones Lang LaSalle's South-east Asia research head Chua Yang Liang reckons that demand for the latest site will be lukewarm given the spate of negative news in global financial markets.
Cushman's Mr Han says that the plot is also less attractive than another transitional office site in Mohamed Sultan Road launched for tender last month by URA. 'The Mohamed Sultan site is in a superior location, given its proximity to the CBD, although it has a narrow configuration which could make it harder to maximise the net lettable area and floor-plate efficiency for a new development,' he said.
URA has launched eight transitional office sites since it introduced the scheme in July last year.
'Such parcels on short 15-year leases were mooted primarily to cater to the office supply shortage situation prevalent a year ago. However, market fundamentals have changed since,' CBRE's Mr Li said.
'Based on our estimated average annual demand for office space of 1.6 million sq ft, combined with the 1.7 million sq ft and 2.8 million sq ft that will come on-stream in 2009 and 2010 respectively, there is no supply crunch in the near future. We believe the government should review the necessity of launching more transitional offices in the immediate future.'
Agreeing, Savills Singapore's director of marketing and business development Ku Swee Yong said: 'By the time a development on the Mountbatten Road site launched today is completed, say in Q2 2010, there would be a large supply of Grade A office space in prime locations. We can say the objectives of the transitional office space programme have been met.'
Analysts also doubt need for more transitional offices
A 15-YEAR leasehold transitional office site in Mountbatten Road, launched yesterday, is expected to fetch top bids that are 15-40 per cent lower than a nearby site sold in January this year, according to some property consultants.
Some analysts again questioned the need for the government to keep releasing transitional office sites, given that a substantial supply of Grade A office space will be completed from 2010.
Separately, a UBS Investment Research report dated yesterday says that a 1.5-6 per cent cut in the number of jobs in Singapore's financial industry could lower UBS's forecast of monthly prime office rents from $16.20 per square foot (psf) currently to $8.60-9.50 psf in 2012 - a 41-47 per cent slide. This is more pessimistic than an earlier UBS forecast of a 34 per cent fall to $10.50 psf by 2012.
UBS also cited Urban Redevelopment Authority (URA) data showing that median office rents in the CBD had fallen in July. Monthly median rents in the Raffles Place, Tanjong Pagar and Cecil Street areas are now $12.50 psf, $7.28 psf and $6.50 psf, compared with $14.98 psf, $7.49 psf and $6.65 psf in June.
Cushman & Wakefield managing director Donald Han reckons that the highest bid for the Mountbatten Road plot will be $55-59 psf per plot ratio (ppr) - about 15-20 per cent less than for the earlier plot, which fetched $69.17 psf ppr. He said that the latest plot is farther from the future Mountbatten MRT Station - compared to the earlier plot which is just next to the station - and that sentiment in the office market is weaker now.
CB Richard Ellis executive director Li Hiaw Ho puts the range of top bids at $40-50 psf ppr - a 28-42 per cent decline from the price fetched by the nearby plot. Mr Li bases his estimate on the assumption of average gross monthly rent of $5 psf for a new office development on the site and a 10 per cent annual net return for the investor, given the short period of 13-14 years to recoup the investment.
Jones Lang LaSalle's South-east Asia research head Chua Yang Liang reckons that demand for the latest site will be lukewarm given the spate of negative news in global financial markets.
Cushman's Mr Han says that the plot is also less attractive than another transitional office site in Mohamed Sultan Road launched for tender last month by URA. 'The Mohamed Sultan site is in a superior location, given its proximity to the CBD, although it has a narrow configuration which could make it harder to maximise the net lettable area and floor-plate efficiency for a new development,' he said.
URA has launched eight transitional office sites since it introduced the scheme in July last year.
'Such parcels on short 15-year leases were mooted primarily to cater to the office supply shortage situation prevalent a year ago. However, market fundamentals have changed since,' CBRE's Mr Li said.
'Based on our estimated average annual demand for office space of 1.6 million sq ft, combined with the 1.7 million sq ft and 2.8 million sq ft that will come on-stream in 2009 and 2010 respectively, there is no supply crunch in the near future. We believe the government should review the necessity of launching more transitional offices in the immediate future.'
Agreeing, Savills Singapore's director of marketing and business development Ku Swee Yong said: 'By the time a development on the Mountbatten Road site launched today is completed, say in Q2 2010, there would be a large supply of Grade A office space in prime locations. We can say the objectives of the transitional office space programme have been met.'
SLA's Land Sales Double To $12 billion
Source : The Straits Times, Sep 24, 2008
10-year high comes in year marked by mega deals, strong demand
THE property market's bull run might have stopped but not before sending land sale revenue at the Singapore Land Authority (SLA) to a 10-year high of $12.4 billion.
Its bumper result for the 12 months ended March 31 was a twofold increase from the $6.2 billion in 2006 and is just shy of the 1997 record of $14 billion.
This Beach Road site, bought by a City Developments-led group at $1.69 billion, is one of the deals that helped SLA to its bumper result. -- PHOTO: URA
Some of the mega sales that added to the stellar figures included a plum site at Beach Road, bought by a City Developments-led consortium for $1.69 billion, and a 1.7ha site on Irrawaddy Road sold to Parkway Novena for $1.2 billion to build a private hospital.
SLA's annual report, released yesterday, showed that land sale proceeds from the private sector hit a record high of $10.4 billion - well up on the $3.5 billion for 2006 and the $6.9 billion posted in the 1997 property boom.
Land sales to the public sector dropped slightly to $2 billion, from $2.7 billion in 2006.
The financial year was marked by strong demand for land for offices, hostels, international schools and other commercial uses.
The agency rolled out 78 tenders for such interim uses - about one every 4.5 days and 8 per cent up on 2006.
SLA's operating income hit a record at $100.9 million - a 14 per cent increase from a year ago. Its total operating surplus was $17.1 million.
The gross floor area (GFA) of SLA- managed state properties also hit a record of 4.02 million sq m, translating into an 87 per cent occupancy rate of all existing state properties.
SLA said the largest use - at 1.7 million sq m GFA - of its state properties is by social and civil institutions, including voluntary welfare organisations, and for the arts and recreation purposes.
It also injected about 122,000 sq m of space to ease the office crunch and awarded more than 40 properties for educational uses.
'The potential for good rental yield has drawn many new and experienced investors to bid for state properties,' said SLA chief executive Lam Joon Khoi.
Mr Lam added that SLA has developed an integrated registration system for private and HDB properties.
This will extend search facilities, currently available only for private properties, to HDB flats.
For the coming year, SLA said it will focus on a new initiative: Establishing a national spatial data infrastructure.
It will develop a geographic information system that will coordinate and manage land data and data exchange across all the public agencies.
SLA chairman Greg Seow said the initiative is 'significant as it aids in both strategic planning and operations for the appropriate agencies'.
'It will also demonstrate a government-wide approach to problem-solving and resource-sharing,' he added.
More details on this initiative will be released later.
Year of records
# Land sales jumped to $12.4 billion, from $6.2 billion in 2006
# Land sales to private sector at a record $10.4 billion, eclipsing 1997 property peak of $6.9 billion
# Operating income rose 14 per cent to $100.9 million from a year ago
# Operating surplus at $17.1 million
# Agency fees from SLA's land business group contributed $61.6 million, from last year's $54.8 million
# Rental collections for state land and properties rose to $550.5 million - $36 million higher than last year.
# Title registration grew 17 per cent to a record $4.3 million
10-year high comes in year marked by mega deals, strong demand
THE property market's bull run might have stopped but not before sending land sale revenue at the Singapore Land Authority (SLA) to a 10-year high of $12.4 billion.
Its bumper result for the 12 months ended March 31 was a twofold increase from the $6.2 billion in 2006 and is just shy of the 1997 record of $14 billion.
This Beach Road site, bought by a City Developments-led group at $1.69 billion, is one of the deals that helped SLA to its bumper result. -- PHOTO: URASome of the mega sales that added to the stellar figures included a plum site at Beach Road, bought by a City Developments-led consortium for $1.69 billion, and a 1.7ha site on Irrawaddy Road sold to Parkway Novena for $1.2 billion to build a private hospital.
SLA's annual report, released yesterday, showed that land sale proceeds from the private sector hit a record high of $10.4 billion - well up on the $3.5 billion for 2006 and the $6.9 billion posted in the 1997 property boom.
Land sales to the public sector dropped slightly to $2 billion, from $2.7 billion in 2006.
The financial year was marked by strong demand for land for offices, hostels, international schools and other commercial uses.
The agency rolled out 78 tenders for such interim uses - about one every 4.5 days and 8 per cent up on 2006.
SLA's operating income hit a record at $100.9 million - a 14 per cent increase from a year ago. Its total operating surplus was $17.1 million.
The gross floor area (GFA) of SLA- managed state properties also hit a record of 4.02 million sq m, translating into an 87 per cent occupancy rate of all existing state properties.
SLA said the largest use - at 1.7 million sq m GFA - of its state properties is by social and civil institutions, including voluntary welfare organisations, and for the arts and recreation purposes.
It also injected about 122,000 sq m of space to ease the office crunch and awarded more than 40 properties for educational uses.
'The potential for good rental yield has drawn many new and experienced investors to bid for state properties,' said SLA chief executive Lam Joon Khoi.
Mr Lam added that SLA has developed an integrated registration system for private and HDB properties.
This will extend search facilities, currently available only for private properties, to HDB flats.
For the coming year, SLA said it will focus on a new initiative: Establishing a national spatial data infrastructure.
It will develop a geographic information system that will coordinate and manage land data and data exchange across all the public agencies.
SLA chairman Greg Seow said the initiative is 'significant as it aids in both strategic planning and operations for the appropriate agencies'.
'It will also demonstrate a government-wide approach to problem-solving and resource-sharing,' he added.
More details on this initiative will be released later.
Year of records
# Land sales jumped to $12.4 billion, from $6.2 billion in 2006
# Land sales to private sector at a record $10.4 billion, eclipsing 1997 property peak of $6.9 billion
# Operating income rose 14 per cent to $100.9 million from a year ago
# Operating surplus at $17.1 million
# Agency fees from SLA's land business group contributed $61.6 million, from last year's $54.8 million
# Rental collections for state land and properties rose to $550.5 million - $36 million higher than last year.
# Title registration grew 17 per cent to a record $4.3 million
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