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Parc Seabreeze

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Address: 532 Joo Chiat Road
Tenure: Freehold
Expected Completion: Mar 2012
Site Area: 58,750 sqft
Description: 20 storey in one tower block
Total Units: 94

Unit Types:
3 bedrooms ~ 1314-1398 sqft
4 bedrooms ~ 1625-1647 sqft
3+1 penthouse ~ 2347 sqft
4+1 penthouse ~ 3004 sqft

Facilities: Basement Carpark (103 lots), Landscape Deck, Sky Terrace, Children Play Area, Lap Pools, Social Pool, Children Pool, Spa Pool, Dining Pavilion, BBQ Pits, Gymnasium, Aqua Gym, Sauna and Steam Room

Location:

• Excellent transportation linkages like PIE, ECP (10-15 mins to CDB, Marina Bay Integrated Resort, Suntec Shopping belt, Raffles City, Changi Airport)
• Easy access to abundant of amenities, i.e. supermarts, wet markets, banks, food centres
• Close proximity to excellent schools like CHIJ (Katong) Primary, Tanjong Katong Primary, Chatsworth Intl Sch, Victoria Jr College, Ngee Ann Pri School, St Patrick School
• Excellent recreational facilities (East Coast Park, Chinese Swimming Club, Parkland Golf Driving range, Marina Bay Driving Rang & Golf Course)

Email lushhome@gmail.com for more information or appointment.

GIC says world could be facing worst recession in 30 years

The world could be facing its worst recession in 30 years, said Deputy Chairman and Executive Director of the Government of Singapore Investment Corp (GIC) Dr Tony Tan.

He shared this view with over 500 GIC staff at a conference on Monday.

"The financial contagion has now spread beyond US shores, increasing the likelihood of a global financial crisis and recession. We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years," he said.

Dr Tan added that this could be mitigated if timely actions are taken by policymakers around the world, boosting both markets and investor sentiment.

If this does not happen within the next three to four months, it will be up to the markets to work out current problems, and this is expected to be a long, painful and drawn-out process.

He said: "What is clear is that the financial and investment markets will be extremely nervous and volatile over the next one or two years."

While that means GIC's multi-billion-dollar investments in UBS and Citigroup remain shaky in the short term, Dr Tan pointed out that these are long-term investments and they are expected to give good returns when markets stabilise and economic conditions return to normal levels.

GIC invested US$10.8 billion in UBS in December last year and US$6.88 billion in Citigroup this January.

At the staff conference, GIC also unveiled three new group committees – the Group Management Committee, the Group Investment Committee, and the Group Risk Committee.

The Group Management Committee, chaired by GIC's Group Managing Director Lim Siong Guan, will address and discuss organisational issues of the group.

The Group Investment Committee will be chaired by Group Chief Investment Officer Ng Kok Song. It will develop and implement asset allocation policies and investment strategies at the group level. It will also review risk and performance of asset classes regularly.

Chief Risk Officer Sung Cheng Chih will chair the Group Risk Committee which will oversee and guide the development and implementation of risk management policies.

These committees will report to an executive committee chaired by Dr Tan.

"This management structure enables GIC to have the group-wide oversight on our business operations, investments and risks while giving sufficient autonomy to our investment subsidiaries so that they can respond in a timely fashion to changes in investment circumstances," said Dr Tan.

Analysts said this is a natural move as companies around the world brace themselves for a rocky ride ahead.

GIC's investments are closely watched as the fund is seen as one of the largest sovereign wealth funds in the world.

It is estimated to have some US$330 billion in assets under management, behind Abu Dhabi Investment Authority and Norway's Government Pension Fund.

Source : Channel NewsAsia - 21 Apr 2008

K-REIT Asia's Q1 distributable income up 166% to S$11.4m on-year

K-REIT Asia has booked a first quarter distributable income of S$11.4 million, up 166 per cent from the same period a year ago.

The jump was mainly due to contributions from its one-third interest in One Raffles Quay, which was acquired in December 2007.

K-REIT said it saw strong rental and occupancy rates.

The company is hoping to raise almost S$552 million through a rights issue in March. Proceeds of the rights issue will be used to repay the loan for its stake in One Raffles Quay.

For the first quarter ended March, K-REIT Asia will distribute S$0.046 per unit.

K-REIT Asia's portfolio includes Prudential Tower, Keppel Towers, GE Tower, Bugis Junction Towers and one-third interest in One Raffles Quay, which were worth a total of S$2.1 billion as of December 2007. - CNA/ac

Source : Channel NewsAsia - 21 Apr 2008

KepLand secures option to develop residential site in Vietnam

Property developer Keppel Land has secured an option to develop a residential site in Vietnam's Ho Chi Minh City.

The project is estimated to cost US$390 million.

Keppel Land signed the agreement through its wholly-owned subsidiary Earlsbay Investments.

Under the deal, the Singapore developer will hold a 60 percent stake, while local property developer Hong Quang takes on the remaining interest.

The project is expected to be launched next year and is targeted at the upper middle market.

The development is expected to yield 1,500 luxury apartments.

Keppel Land is one of the largest real estate investors in Vietnam.

Its portfolio there ranges from office developments and residential properties to serviced apartments. - CNA/ms

Source : Channel NewsAsia - 21 Apr 2008

CapitaLand, Abu Dhabi's Mubadala join hands to develop properties

Property developer CapitaLand is joining hands with Mubadala Development to invest in the property sector in Abu Dhabi.

The two partners have launched a joint venture company called Capitala. They are pumping in US$300 million into the joint venture.

Mubadala Development will hold a 51 percent stake, with CapitaLand holding the remaining 49 percent.

Capitala will develop mainly residential properties in Abu Dhabi.

Its flagship project, with a total project cost of US$4 billion to US$5 billion, is a mixed-use integrated development surrounding the Zayed Sports City Stadium.

Mubadala Development is a wholly-owned investment firm of the Abu Dhabi government. - CNA/ms

Source : Channel NewsAsia - 21 Apr 2008

Marina at Keppel Bay wins Best Asian New Marina award

It scored for its pontoon system, wave attenuator, service standards

Marina at Keppel Bay has beaten seven other new marinas in the region to win the Best Asian New Marina/Yacht Club award at the Christofle Asia Boating Awards in Shanghai.

Twenty judges - industry experts from Thailand, Malaysia, Hong Kong, China, India and Singapore - assessed entrants on such criteria as staff service, facilities, pontoons and other dock equipment and location. Assessments were carried out on site and included meeting boaters at marinas to get their views.

Features that gained points for Keppel included its pontoon system built by US-based Bellingham Marine Industries, which incorporates a pump-out system for waste and a wave attenuator to dampen the effect of wake. The marina also scored well for service standards - it is the only marina in South-east Asia where all staff undergo a management course.

The marina beat the only other new marina launched in Singapore last year, Sentosa Cove's One Degree 15 Marina Club, as well as new developments in Dubai and China.

Among established marinas, Malaysia's Royal Langkawi Yacht Club took the top prize. Other awards included Best Asia-based Charter Company, which went to Simpson Marine and Best Asian Maritime Capital which went to Qingdao. Altogether, 21 awards were given.

Accepting its award, Marina at Keppel Bay's chief marina officer Francis Olsen said: 'Our guiding principle is simple - to offer best-in-class services as we strive to become Asia's waterfront lifestyle destination of choice. This award will spur us to work harder and lend strength to our efforts to put Singapore on the world's prime waterfront playground map.'

Although brand new, the marina has already staged a number of flagship events including hosting the 10-yacht Clipper fleet for their stopover in Singapore on the Clipper 07/08 round the World Yacht Race. It will also host South-east Asia's biggest boat show, Boat Asia 2008, next week.

The annual Christofle Asia Boating Awards is widely known as the region's premier event for recognising the efforts of boat builders, marinas, clubs and individuals in creating a diverse and exciting boating community. It has also become a must-attend event for Asia's jet set.

'This is the chance for Asia to celebrate its achievement as a growing centre of luxury boating that will rival places like the Caribbean and the Mediterranean in the near future,' said Olivier Burlot, managing director of Blu Inc Media. The awards are sponsored by Christofle and organised by Blu Inc Media, publisher of Asia-Pacific Boating and China Boating magazines.

Source : Business Times - 17 Apr 2008

US housing starts hit 17-year low while consumer prices stay mild

Inflation data seen giving Fed scope to cut interest rates

The number of US housing projects started last month fell to the lowest in 17 years, while consumer prices moved up a bit less than expected, leaving the Federal Reserve some room to lower interest rates to ward off a housing-led slowdown.

While the slide in the housing sector continued, industrial production unexpectedly rebounded as utilities raised output due to colder weather, making up for weak manufacturing growth.

The Commerce Department yesterday said that housing starts dropped 11.9 per cent in March to an annual rate of 947,000 units, the slowest pace since March 1991 and well below the 1.02 million expected by economists.

'These housing starts suggest that the pace of decline is intensifying, which is the last thing the US economy needs right now,' said Stephen Malyon, senior currency strategist at Scotia Capital in Toronto.

Building permits fell 5.8 per cent to their lowest since April 1991, when the economy was in recession.

Separately, the Labor Department said consumer prices rose 0.3 per cent last month, slightly less than expected, after a flat reading in February. Stripping out food and energy, core prices, which also held steady in February, moved up an even milder 0.2 per cent, restrained by a big drop in the cost of clothing.

US stock prices shot higher and US government bond prices moved lower as investors saw the price data as leaving more room for the US central bank to keep cutting interest rates to try to spur a slowing economy. The US dollar lost ground on the prospect of more rate cuts, with the euro reaching a record high.

The Fed has lowered benchmark borrowing costs by three percentage points since mid-September, trying to ward off spreading weakness from the deep housing downturn and a related drying up of credit.

The report on consumer prices showed rising energy prices continuing to exert upward pressure on overall inflation.

Energy prices shot up 1.9 per cent in March. The cost of petrol, which hit record highs last month, rose 1.3 per cent.

While financial markets initially greeted the consumer price data as providing greater scope for the Fed to lower interest rates, not everyone agreed. Over the past year, consumer prices have risen a sharp 4 per cent on the back of surging energy costs.

'In spite of a benign core reading, the overall increase will persuade the Fed to be less aggressive in easing rates,' said Richard DeKaser, chief economist at National City Corp in Cleveland.

Separately, the Fed said output at the nation's mines, factories and utilities rose 0.3 per cent in March after a downwardly revised drop of 0.7 per cent in February. Wall Street economists had forecast a 0.1 per cent decline after February's previously reported 0.5 per cent fall.

Utility output climbed 1.9 per cent after a 3.6 per cent drop in February, while manufacturing production rose 0.1 per cent after a 0.5 per cent fall.

'Factory output was held down by a large decline in the output of motor vehicles and parts. A shortage of motor vehicle parts that resulted from a strike at a parts manufacturer idled a number of motor vehicle assembly plants,' the Fed said in the report, referring to the seven-week-old walkout at American Axle & Manufacturing Holdings that lay behind a 5.4 per cent fall in motor vehicle output. Excluding motor vehicles, factory production rose 0.4 per cent.

The capacity utilisation rate, a gauge of how busy the nation's industry was, edged higher to 80.5 per cent from 80.3 per cent, still well below levels that would be considered inflationary. -- Reuters

Source : Business Times - 17 Apr 2008

Property sales total S$8.4b in Q1, up 1% quarter-on-quarter

Investment sales level in the Singapore property market in the first quarter of 2008 was similar to that in the fourth quarter of 2007 despite deepening concerns regarding the US economy.

A report by DTZ Debenham Tie Leung said a total of S$8.4 billion worth of transactions was concluded, a slight increase of one per cent quarter-on-quarter.

The office sector was the best performer with S$3.4 billion in sales, up 134 per cent against the previous quarter.

The office sector was supported by en bloc transactions which saw several major buildings, like One George Street, Hitachi Tower, Singapore Power Building and One Philip Street, being transacted.

The industrial sector also saw increasing interest. Investments in industrial properties rose 31 per cent quarter-on-quarter to S$690.5 million, mainly in en bloc deals purchased by REITs.

However, residential sales fell to S$2.2 billion, down 45 per cent from the last quarter.

DTZ said sales activity in the private residential market slowed significantly in the first quarter due to weakened market sentiments. It added that developers and buyers were taking a wait-and-see attitude.

Preliminary figures showed there were only about 2,000 private residential transactions recorded through caveats in the first two months of 2008.

According to DTZ, there were only 795 developer sales in the first quarter of this year, reflecting a 46 per cent quarter-on-quarter decline. This was the second lowest quarter of developer sales since the SARS-stricken period, which was the first quarter of 2003.

DTZ added that rents have increased marginally due to tight supply. Monthly rents of prime condominiums increased 2.1 per cent quarter-on-quarter to average S$4.90 per square foot.

For non-prime districts, monthly rents of condominiums increased by an average of 2.5 per cent quarter-on-quarter to S$2.10 per square foot.

DTZ said rental increases of private residential properties are likely to moderate due to budget constraints and the slower influx of expatriates. - CNA/vm

Source : Channel NewsAsia - 17 Apr 2008

Landmarks plans Indonesia's first casinos in Bintan

Malaysia's Landmarks Bhd, backed by Asia's largest gambling company, hopes to build Indonesia's first legalised casinos in a US$3.1 billion resort project to compete with Las Vegas Sands Corp in Singapore.

The 'objective is to develop a new destination for Indonesia', chief operating officer Lim Boon Soon said in an interview in Kuala Lumpur.

The gaming element 'will accelerate the whole integrated development in Bintan', an island in Indonesia.

The planned casinos in Bintan will compete with gaming resorts that Las Vegas Sands and Genting Bhd, Landmarks's biggest shareholder, are racing to build in Singapore, which is a 55-minute ferry ride away.

The regulated gambling market in the Asia-Pacific region will probably expand 16 per cent a year to US$30.3 billion in 2011, according to PricewaterhouseCoopers LLP.

'It could work, though the execution risks are there,' said Keith Wee, an analyst at OSK Research Sdn. With casinos in Malaysia as well as Singapore, 'competition will be tough'. Singapore plans to double the number of overseas visitors to 17 million annually and triple tourism receipts to S$30 billion by 2015. The island-nation ended a four-decade ban on casinos in 2005 amid surging gambling revenue in the Chinese city of Macau.

Landmarks aims to capture the spillover from Singapore, targeting about three million visitors a year to Bintan, eight times more than the 370,000 tourists now, Mr Lim said.

Bintan, the largest island in the Riau archipelago of Indonesia in the South China Sea, is being developed into one of Asia's biggest holiday resorts by the governments of Indonesia and Singapore and a group of companies.

Resorts there include the Banyan Tree Bintan, Bintan Lagoon Resort and Club Med Ria. Occupancy rates for resorts in Bintan climbed to 61.4 per cent last year from 54.9 per cent in 2006, according to the website of Bintan Resorts International Pte, the marketing consultant for resorts in Bintan. There are more than 1,300 hotel rooms in the island, it said.

Landmarks' project, which will be valued at S$4.2 billion, will have as many as five resorts, condominiums, villas, health spas and water canals, Mr Lim said in an interview on Tuesday. 'Five years down the road, having a casino won't be special.'

The casinos may be opposed by local politicians. 'The plan to build casinos uses a newly issued regional regulation,' said Ferry Mursidan Baldan, a member of the Indonesian Parliament's domestic and regional affairs commission. 'This is a problem' because 'the national law says that gambling is banned'. Should gambling be legalised in Bintan, 'then other regions would follow suit', he said. 'This we don't want to happen.'

Landmarks will build the resorts over eight years at a development cost of S$2 billion. The company plans to sell five so-called integrated resort lots of about 25 hectares each to investors, Mr Lim said. Each of them comes with a 'casino offering', he added. -- Bloomberg

Source : Business Times - 17 Apr 2008

KSH Holdings clinches S$126.8m deal to build condo at Sentosa Cove

Construction and property developer KSH Holdings has secured a S$126.8 million contract to build a condominium development at Singapore's Sentosa Cove.

The contract is the first of its kind to be awarded by Lippo Marina Collection for the construction of a luxury housing development at the site.

This will be the group's fifth high-end luxury residential property project at Sentosa cove. The deal will bring KSH holdings order book to S$770 million.

In the last four months, project contracts for the developer have added up to some S$354.4 million, in comparison to a total of S$510 million for 2007.

Work on the site is to begin this month and the project is expected to be completed by December 2010. - CNA /ls

Source : Channel NewsAsia - 17 Apr 2008

PM Lee positive about proposal to link up S'pore, JB urban rails

Prime Minister Lee Hsien Loong has responded positively to a suggestion by Johor's Chief Minister Abdul Ghani Othman to link up the urban rails of Singapore and Johor Bahru.

The issue was discussed when visiting Malaysian Foreign Minister Rais Yatim called on Mr Lee at the Istana on Thursday morning, said Foreign Minister George Yeo at a joint news conference with his Malaysian counterpart later in the day.

The proposal will now be discussed by a joint ministerial committee which is looking into the Iskandar Malaysia project. This committee was set up after PM Lee and his Malaysian counterpart, Mr Abdullah Badawi, had their first retreat in Langkawi last year.

Singapore is the first stop in a series of introductory visits by the new Malaysian foreign minister, and this signals the special relationship between the two neighbours.

Dr Rais said: "Between Malaysia and Singapore, there is only a one-way street and that is to forge ahead together for a future within ASEAN and to share the good fortunes of what the world will offer.

"No one will come to us and help us except ourselves. Therefore, the commonality between the two nations should be at the top of priority lists and the differences – whatever they are – should be left to be scored later."

Among the issues discussed between the Singapore and Malaysian foreign ministers is how to further integrate the economies of both countries and to enhance connectivity across the causeway.

The IDR is one of the cooperation projects which both foreign ministers hope would enhance bilateral ties between Singapore and Malaysia. The project's joint ministerial committee is already in place to look into various proposals.

Mr Yeo said: "Last year, the two prime ministers had their retreat in Langkawi which was very successful, and we are hoping that Singapore can host the next retreat sometime in the near future."

He added that the International Court of Justice is likely to release its ruling on the disputed island of Pedra Branca next month, and both foreign ministers have agreed that they would congratulate whichever country that emerges victorious.

"Whatever the decision, we would accept it and it will not affect bilateral relations. The lighthouse would continue to provide valuable facilities to all navigators, so nothing should change. This is the common position we take," said Mr Yeo.

Dr Rais said: "What is committed through the rule of law, through international arrangement, we must respect. If we do not do that, then being neighbourly is not substantive enough."

On the current political situation in Malaysia, Dr Rais stressed that the question of leadership change is not on the agenda at all.

He said: "These are what we call political airings or political elements in the thoughts of certain sectors in the party as well as outside the party... more so in the opposition.

"The litmus test would be at the (UMNO) general assembly, which would be held in December, and I am most confident that Datuk Seri Abdullah will be the winning element for us all and the Barisan (Nasional) will continue to be a strong and prospective true government for Malaysia."

Dr Rais is also confident that Malaysia's relationship with Singapore will continue to improve going forward.

On Thursday afternoon, the Malaysian foreign minister also called on Senior Minister Goh Chok Tong at the Istana and had a friendly exchange of views on recent developments in Malaysia and the state of bilateral relations.

The two leaders reaffirmed the importance of having good neighbourly relations between the two countries.

Source : Channel NewsAsia - 17 Apr 2008

Sino-Singapore Tianjin eco-city to be ready in 10 to 15 years

The mega eco-city project in Tianjin, which is jointly planned by China and Singapore, will be completed in 10 to 15 years.

But a glimpse of the whole city can be seen in as early as three years when a start-up area is completed, according to National Development Minister Mah Bow Tan, who is leading the Singapore team in the project.

This urban development will not take place at the expense of the environment as buildings in the Sino-Singapore Tianjin eco-city will be energy efficient.

Ninety percent of its over 300,000 residents will also be making 'green trips' by walking, cycling or using public transport to reduce carbon emissions.

Moreover, green technologies will be adopted to ensure effective and efficient recycling of refuse, sewage and wastewater.

The eco-city is located just 40 kilometres from Tianjin city and 150 kilometres from Beijing.

Mr Mah said Singapore hopes to incorporate some of its experience in environment-friendly practices to the eco-city. At the same time, Singapore wants to glean some lessons from the joint project.

The minister said: "Some of the ideas are derived from what we are already doing here. For example, we are specifying that all the buildings in the eco-city will be 'Green Marked'. We will take some of the Green Mark (certified) buildings, adapt it to the rules in China and implement a Green Mark in China.

"But in the process of doing it, I'm sure we will adapt and improve, and marry the best practices from both sides. I would expect that we will take the improved version and bring it back to Singapore. That's why I say that it's an interactive process - we are learning from each other."

Mr Mah said successful features in the eco-city will be implemented in new developments such as those in Jurong.

The eco-city will be built based on a concept very much like Singapore's town centres, so the new city will have educational institutions, medical centres, commercial and residential areas within walking distances.

A total of 20 percent of its residential area will also be allocated for public housing.

Singapore plans to share its expertise in wastewater management, urban planning and transportation as well.

"At the end of the day, there will be a clear Singapore imprint in this... it will reflect a lot of the experiences we have gathered in Singapore over many, many years," said Mr Mah.

The first development, which is expected to be ready in three years' time, is an area that covers over three square kilometres in the south of the eco-city. Facilities in this area include a business park and a university.

The masterplan for the eco-city will be released for public consultation in Tianjin sometime next week. But before that, work has already started on detailed plans for the start-up area.

When completed, the eco-city is expected to be a model for other cities in China, as well as other parts of the world.

It is the second joint project by the Singapore and Chinese governments after the Suzhou Industrial Park.

The Chinese government has identified the project as the third most important development in China after the Pearl River Delta and the Yangtze River Delta projects.

Source : Channel NewsAsia - 17 Apr 2008

HDB gets 5,700 applications for 490 flats in April sale

The Housing and Development Board's (HDB) April sale of four-room and bigger flats closed on Wednesday, with 5,700 applications for the 490 flats offered.

These flats are located in various towns such as Bukit Batok, Bukit Panjang, Choa Chu Kang, Jurong East, Jurong West, Sembawang, Woodlands and Yishun.

HDB said the take-up rates for its Bi-monthly Sales Exercise are high because the flats offered are completed or nearing completion.

However, it noted that while there is a high number of applications for its unsold stock, a significant number of applicants under the Built-To-Order (BTO) scheme does not end up purchasing a flat.

For instance, there were 1,284 applications received for 698 4-room flats offered under the September 2007 BTO project at Coral Spring in Sengkang. However, more than 200 flats remained unsold after all the applicants in this project were invited to select a unit.

So HDB is currently reviewing the flat application system, following feedback that non-serious applicants are crowding out those with more pressing housing needs.

HDB flats are now mainly sold through the BTO system, where projects are built only when a majority of units are booked. As these BTO flats take about three years to be complete, buyers are advised to plan ahead for their housing needs.

Couples who are planning to get married are encouraged to take advantage of HDB’s Fiance-fiancée Scheme to book their BTO flats early, to reduce the waiting time for a new flat upon marriage.

From April to September, HDB plans to offer 5,000 new BTO flats in towns such as Punggol, Sengkang, Woodlands and Bukit Panjang. The next two BTO launches will be in Punggol and Sengkang at the end of April.

HDB has also advised urgent buyers to consider resale flats in the open market where eligible first-time buyers can apply for the S$30,000 CPF Housing Grant.

First-timers who buy a resale flat to stay with or near their parents are also entitled to a higher grant of S$40,000. - CNA/vm

Source : Channel NewsAsia - 17 Apr 2008

Private home sales leapt 80% in March from February

There are signs the property market in Singapore might be making an about-turn following its muted start to the year.

Figures released by the Urban Redevelopment Authority (URA) show that the number of private homes sold in March leapt 80 per cent from the month before, signalling improved buyer sentiment.

And developers were even more positive. They launched more than 600 units for sale in March - about 85 per cent more than the month before, and the highest in seven months.

Analysts said they expect to see more units being placed on sale in the months to come.

Donald Han, Managing Director of Cushman & Wakefield, Singapore, said: “Moving forward we expect more launches taking place in the second quarter of this year. While there are generally not a slew of new launches, a lot of developers have re-launched their projects. Re-launched in the sense (they) have started to price properties at more realistic levels.

“Early part of year, it's not too effective to start pricing there. But now we are well into 2008. There are developers who are certainly using pricing to attract more positive sentiment to lure the buyers out."

Still, developers have some way to go before the property market even begins to resemble that of its heydays last year.

A closer look at the numbers show that most of the increase in sales came from the high-end market where sales jumped 80 per cent, compared to a 31 per cent hop in suburban region sales.

For now, it seems that mass market buyers will still be holding back in hope of better deals to come.

Analysts are also quick to note that the ratio of launches to sales in March still remain at February levels at 47.5 per cent to 46.4 per cent.

Nicholas Mak, Director of Knight Frank, said: "At first glance, it seems like sales figures in March have improved over February. The numbers moved back to about the same level as in January or December. But on closer analysis we find that the take-up has weakened. Typically about 70 to 90 per cent of units launched are sold. Right now that figure has fallen to about 50 per cent, same as February."

But overall, analysts said the private home market data for March should still put a smile on the faces of those in the industry, given the current economic climate due to the bad news from the US and its ensuing ripple effect worldwide. - CNA/vm

Source : Channel NewsAsia - 15 Apr 2008

More controls to keep real estate agents in line

Real estate agents may be accredited under a new scheme, if the Ministry of Finance (MOF) gives the go-ahead.

Two industry watchdogs - the Institute of Estate Agents (IEA) and Consumers Association of Singapore (CASE) - are joining hands to start a new accreditation scheme and they plan to submit a proposal to MOF in the middle of the year.

They believe compulsory guidelines will help improve the professionalism of the real estate industry.

James Chua had planned to buy a 4-room HDB flat, in the Admiralty area, valued at about S$260,000. He was willing to pay only S$12,000 in cash over valuation (COV).

But he was told that another buyer had already made a similar offer, and that was when his agent came up with a "suggestion".

"She (property agent) said if (I am) willing to pay S$10,000 COV and S$2,000 commission to the selling agent, then (I) can still buy the flat. I was taken a back. Isn't that not representing the best interests of the seller? I find that highly unethical and lacking integrity. I said I won't do it but my buying agent said if you are still paying S$12,000, then what's the big deal. That was when I started to suspect that they are in this deal together," said Chua.

Chua had since bought another flat through a new agent. But he had reported the incident to the Inland Revenue Authority, which is the licensing body for real estate agencies. Chua hopes more can be done to better regulate the industry.

Last year, over 1,000 complaints were filed against property agents.

The IEA said this is about 40 percent more than 2006, partly due to the property boom.

Said Jeff Foo, president of the Institute of Estate Agents: "All these years, we hear consumers complaining about unethical agents, agents not knowing their job. And at the end of the day, nothing is done about it. The agents get away with it scot-free, because they are not regulated.

"The best thing is to legislate. If taxi drivers and security guards are all licensed, why not real estate agents? Real estate agents deal with about the largest investment of some consumers."

IEA said it can only take disciplinary action against agents who are its members. If found guilty, rogue agents will be blacklisted and will not be able to work for another real estate agency.

It estimated that there are some 30,000 real estate agents in Singapore, and only 1,500 of them are IEA members.

Under the new proposed accreditation scheme, new agents must be trained under the National Skills Recognition System (NSRS).

NSRS is a national framework for establishing work performance standards and certifying skills acquisition, implemented by the Singapore Workforce Development Agency.

Existing agents are expected to upgrade themselves and pass the Common Examination of House Agents. There will also be provisions to punish errant property agents.

For now, the onus is on consumers to do their homework. They can run a check on their agents on IEA's Central Registry System, or ask to see the agent's Practicing Certificate.

From May, agents will have to submit the checklist to HDB, together with the resale application. This is to ensure all procedures are transparent. - CNA /ls

Source : Channel NewsAsia - 15 Apr 2008

Malaysia's UEM Land, Singapore firms in talks

Malaysian state property developer UEM Land is in talks with Singapore real estate firms about joint projects in a US$105 billion industrial and tourism zone in Malaysia's south.

Malaysia unveiled a blueprint in 2006 to transform the southern tip of Johor state into a regional economic zone for industry, logistics, trade and leisure.

'We are in various stages of discussion with Singapore interests,' UEM Land managing director Wan Abdullah Wan Ibrahim told Reuters in an interview on the sidelines of a real estate event in Singapore.

He said that the involvement of Singapore firms - in particular those linked to the government - would boost investor confidence in the Iskandar Malaysia project, just a few minutes drive across the narrow causeway linking the two countries.

Singapore developers that are part-owned by state investors Temasek include CapitaLand and Keppel Land.

UEM Land is the flagship property company of the UEM Group, formerly called United Engineers Malaysia, which is in turn owned by Malaysia's state investment company Khazanah Nasional.

Under a revamp of the group announced earlier this year, UEM will list on the Malaysian stock exchange in September by taking over the listing status of UEM World, which last year reported a 4-fold rise in net profit to RM939 million (US$297 million).

Mr Wan Abdullah said UEM Land aimed to be a regional developer with projects in neighbouring countries by 2010 but its immediate priority was to develop its 9,713-ha Nusajaya development in the Iskandar region.

'There are opportunities today but the board feels we should not divert our attention...but we definitely have the desire to be a global developer.'

Malaysia announced in 2006 plans to set aside 2,200sq-km of land in Johor for a special economic zone that would provide residents and companies in neighbouring Singapore with land for leisure and industry.

Covering an area three times the size of Singapore, Iskandar has attracted Middle Eastern investors including Dubai World as well as multinational companies such as General Electric.

UEM is overseeing the development of a 9,712ha site within the development. -- REUTERS

Source : Business Times - 15 Apr 2008

Malaysia's IDR attracts major Middle East, Singapore investors

Singapore investors have been snapping up the properties within the Iskandar Development Region (IDR) in the Malaysian state of Johor, according to Malaysian property firm UEM Land.

UEM said Singapore investors have so far accounted for 95% of the industrial properties sold on the 24,000-acre plot of land in Nusajaya. The developer said the majority of industrial property interest has come from small and medium businesses.

Singapore investors also make up for 50% of residential sales there.

UEM Land said it is currently in further discussions with Singapore firms for larger joint projects in the IDR, to keep ahead of competition.

"It's not just one man's dream; it's founded on very strong foundations, one of which is Singapore. How do we complement Singapore? At the end of the day, these two governments need to collaborate. Because if we don't, India and China will make us irrelevant in the future, so we've got to collaborate," said Wan Abdullah Wan Ibrahim, MD of UEM Land.

The 24,000-acre plot of land, just a 10-minute drive over the Second Link Bridge from Singapore, Is set to accommodate some 500,000 people when completed in 2025, up from the current 75,000 already there.

Since its launch early last year, 128 acres of industrial land has already been sold and UEM is aiming to sell a further 180 acres this year.

The largest investment to date came from Middle Eastern company Limitless, who is in a joint venture with UEM to pump some S$100 million to develop a 111-acre plot of land.

The developer is looking to spread its wings and gain further investment from overseas, but has noted some concerns.

"We notice that the prime concern, especially coming out of Singapore, is safety and security. So we decided that we need to address the concern," said UEM Land's MD.

To address the issue of security, UEM will be collaborating with General Electric to create a security masterplan. - CNA /ls

Source : Channel NewsAsia - 15 Apr 2008

Stronger Sing$ may weigh down interest rates

Inflows may increase, but stronger currency could hurt exports - SIOW LI SEN

Amid the clouds of uncertainty hanging over some sectors, there is good news for home loan borrowers. Interest rates are poised to fall to levels last seen in 2003 following the move to let the Singapore dollar appreciate strongly in an effort to fight imported inflation.

The Monetary Authority of Singapore (MAS) will be busier than ever - intervening in the banking system to mop up some of the extra liquidity in order to moderate the pressure on interest rates.

Low interest rates might negate some of MAS's anti-inflationary measures by helping fuel domestic growth. But economists say MAS will stick to its guns of using the exchange rate as a tool to fight inflation given Singapore's open economy.

Last week, data showed that the economy grew a stronger than expected 7.2 per cent in the first quarter against 5.4 per cent in Q4, 2007. Inflation rose to a 26-year high of 6.6 per cent.

Analysts expect the three-month Sibor to fall to between 0.75 and 1.00 per cent by the fourth quarter of this year as capital flows are attracted here by a rising Singapore dollar.

The record low for three-month Sibor was 0.56 per cent reached in August 2003, when the US Federal Funds rate was at one per cent, said Citigroup economist Kit Wei Zheng.

Since last Thursday when the MAS decided to reset the Singapore dollar higher, the key three-month Sibor, which is the interbank interest rate, has fallen some 19 basis points to 1.25 per cent.

'Foreigners are betting the Singdollar will appreciate ... the band re-centring would reinforce the market perception that MAS wants the exchange rate to appreciate and increase investor expectations of returns on Singapore dollar assets,' said Mr Kit. This would exert downward pressure on short-term interest rates.

The Singapore dollar is now expected to rally to $1.31 by the end of the year against the US dollar. It was $1.36 yesterday.

It is not clear if MAS's move last week will ease inflation significantly given the persistently high commodity prices, record rents and higher transportation charges.

But the more immediate impact of a stronger local dollar could weaken the demand for exports and hurt the profits of foreign companies operating here, given that their costs are in local currency terms, said some economists.

'There will be a slowdown in exports, likewise for foreign companies, their profit margins will be impacted,' said Mr Kit.

United Overseas Bank's Suan Teck Kin thinks there would be a margin rise in inflows by investors to pick up some gains on the appreciating Singapore dollar, but 'overall, we might not see a wholesale rush of capital inflows'.

'This is because from a foreign investor's point of view, currency return is only one component of total return,' said Mr Suan. 'So if an investor believes there is more upside to the equity/ bond/property market and the upside is better than other parts of the region, then the capital will follow.'

Still, the market is bracing for more MAS interventions and sterilisations.

'Investors should expect the MAS to continue sterilising aggressively, so as to moderate the fall in domestic interest rates as a result of its forex interventions,' said Mr Kit.

MAS has been sterilising in unprecedented amounts.

In February, data showed that MAS sterilised or removed about US$8 billion from the banking system, the second largest amount since May 2006 when it was over US$9 billion, said Mr Kit.

This means that Singapore's reserves will continue its climb to record levels.

At the end of March, spot reserves reached S$245 billion, up S$18.8 billion from October, he said.

'Our reserves are always climbing, the same for many Asian countries,' he said.

Source : Business Times - 15 Apr 2008

KL property: The view from Kuala Lumpur

PAULINE NG looks at real estate developments in the vicinity of the iconic Petronas Twin Towers

LIKE a beacon, the gleaming twin iconic towers beckon to the hordes of tourists that flock there daily for a snapshot of what many consider to be the symbol of Malaysia.

But tourists are not the only ones wanting a piece of the Petronas Twin Towers. In the past five to six years, demand for properties in the vicinity of the Kuala Lumpur City Centre (KLCC) has increased so much that thousands of high-end residential units have been built or are in the pipeline to meet the demand.

In 1995, before the Petronas Twin Towers came into being, the KLCC area had only six developments and some 928 units of high-end service residences, according to statistics by CH Williams Talhar & Wong. By last year, assuming the 3,000 plus units planned were completed, the number would have ballooned to 27 developments and some 8,000 plus units. Over the next three years, its data shows that an additional 6,000-plus units are expected to come into the market, so that by end-2010, there could be slightly more than 15,000 service residences in the KLCC vicinity.

If Malaysia is looking at a real estate bubble - as some fear it could be, especially if the US sub-prime problems spread - could Kuala Lumpur's hottest address get pricked?

Zerin Properties chief executive Previndran Singhe believes some of the developments that are not well branded could unfortunately become pie in the sky.

But to the still bullish, the latest land acquisition in the area will be further proof that there is indeed still more upside.

Conglomerate YTL Group, which set tongues wagging in Singapore with its successful if somewhat hefty tender for the en bloc purchase of Westwood Apartments on Orchard Boulevard for S$435 million cash, showed it was also prepared to set new benchmarks in Kuala Lumpur.

In the first week of April, reports emerged that it had acquired a plot of land measuring slightly less than an acre on Jalan Stonor in the KLCC area for RM85 million (S$36.6 million) or some RM2,000 psf, beating the previous benchmark of about RM1,500 psf.

Affin Securities said that this shows the excitement over the high-end property market is still present despite concerns over the looming US economic recession and recent election setback suffered by the ruling Barisan Nasional.

'We believe this segment is still attractive given the continued interest by foreign investors, especially Middle Eastern, in strategically located and concept-driven projects in the Klang Valley, Penang and southern Johor,' its property analyst, Alex Goh, said in a client note.

Mr Singhe agrees. He expects the next price benchmark for the KLCC area to hover around the RM2,500 to RM3,000 psf mark, with the 'really good' ones - such as the under-construction Four Seasons hotel-cum-apartment complex by Ong Beng Seng - fetching as much as RM3,500 psf.

Work has begun on the two towers - a 62-storey apartment and a 38-storey hotel - which would be built with CapitaLand on the prime location next to the KLCC Twin Towers. Believed to be launched at an average of RM2,000 psf initially, the units at the prestigious development are said to be selling at RM3,000 psf now.

Premium projects

Another development that is expected to begin construction sometime in the middle of the year but is already generating interest is Kwek Leng Beng's 42-storey Millenium Residences. Although a bit further from the Twin Towers, it is situated on Jalan Bukit Bintang next to Pavilion KL, the swanky new mall in the city. The agent has begun accepting registrations of interest, but said that the price has not been firmed yet. Some agents think it is unlikely to sell for under RM1,800 psf.

These unique, quality developments are far and few between - others are said to include KLCC Properties' The Binjai and stockbroking tycoon Chua Ma Yu's OneKL.

Mr Chua's daughter, Carmen, is convinced that Grade A, international-standard structures are the way forward. The driving force behind the construction of OneKL, she is of the view that the KLCC area is already congested and, with thousands of units in the pipeline, likely to face oversupply. For investors, the similarity of these units - 'all perfect substitutes for each other' - is unlikely to result in significant capital appreciation or a sustainable rental yield, she has observed, 'compared to if you buy a project that truly stands out'.

Most buyers, however, may not have the financial firepower to invest in these premium developments. For them, that land prices continue to soar owing to scarcity in the area is a point of comfort and a reason to be optimistic that real estate prices can be sustained.

Land prices in the KLCC area were around the RM600 psf mark three to four years ago before the upswing in the property cycle. However, only 28 per cent of chief executives polled by CH Williams in an opinion survey believe non-landed residential properties are at the peak of the property cycle, although the survey was general and did not focus on the KLCC area only.

Zerin's Mr Singhe maintains that the KLCC area would only reach its 'market equilibrium' in three years. 'The YTL purchase says a lot,' he observed, and scoffed at suggestions that the recent general election results had spooked investors. 'I have seen transactions increase a week after the GE.'

Real estate was a long-term investment, he said, adding at a property talk in early April in Singapore that he was overwhelmed by the interest. 'The number of people interested in Malaysian property is amazing,' he said, adding that even successful Singaporean developers were making a beeline for Malaysia 'because they feel the market has not peaked yet, and the country with its bigger population is still in a growth cycle'.

He believes that the area can absorb the additional units but stressed the need for improved infrastructure such as better public transport.

Traffic congestion and flooding remain perennial problems, and, if anything, could worsen with more residential and commercial developments taking place in the city. The bad news is that few see the situation getting better anytime soon despite previous talk by the authorities to encourage city living so that Kuala Lumpur is busy 24/7 instead of during working hours only.

Foreigners account for about one third of new units purchased, and property consultants have pointed out that quite a number are happy not to rent out their apartments but to keep them for occasional use and to hold on for capital appreciation. This could ease some of the pressure on rental yields which are bound to ease when more units come on-stream.

Source : Business Times - 15 Apr 2008