News Highlights Thursday 21 February 2008

The Business Times, P1

Mass-market safe, high-end may take a hit
In a worst-case scenario according to most property players polled by BT, luxury-home prices could fall by up to 20 per cent in 2008, while the mass market may hold its own or ease 5-10 per cent at most. In a best-case scenario with sub-prime woes clearing by mid-year, high-end prices could rise up to 10 per cent and mass-market homes as much as 15-20 per cent. The most optimistic is Jones Lang LaSalle (JLL) Research, which forecasts an 18-22 per cent increase in luxury prices and a 20-25 per cent gain in mass-market prices. Observers also believe overseas funds are likely to turn increasingly to parking money in Asia, instead of the United States and Europe. Other demand drivers for the Singapore residential sector, especially the mid and mass segments, include falling mortgage rates, the continued influx of expats from China and India, and wage growth arising from the tight labour market.



The Business Times, P5


UOL profit doubles on valuation gains
UOL Group posted a 124 per cent jump in net profit to $758.9 million. In its outlook for the current year, UOL is still bullish on office rents. It also believes rents for retail space should benefit from high levels of employment, as well as strong tourist arrivals. However, it is cautiously optimistic about the residential market and will launch only three freehold condos this year – Nassim Park Residences, Breeze by the East in the East Coast area and Green Meadows opposite Peirce Reservoir.



The Business Times, P32

Plan to defer public works will have little impact: report
The government’s move to ease pressure on the industry’s costs by deferring $3 billion worth of public-sector projects is expected to have a limited impact on relieving construction demand as it will represent only 10 per cent of annual demand. Construction cost consultancy Rider Levett Bucknall’s (RLB) tender price index increased by 23 per cent as at the end of the third quarter last year. It said that rising construction costs are attributed to increased costs of foreign construction labour and professional expertise, materials and equipment costs, as well as on- and off-site overheads.