News Highlights Monday 14 April 2008

Jurong could be next suburban hot spot
For home hunters seeking good-value, long-term investments, there is one suburban estate screaming for attention: Jurong. In 10 to 15 years' time, it will undergo a transformation that could propel the estate to the forefront of the suburban property market, say industry experts. In the long term, property prices in Jurong could match those in established suburban towns such as Bishan and Ang Mo Kio, said Colliers International. Private condos in Jurong, such as Parc Vista and The Lakeshore, have seen price increases of 50 to 60% since 2005. Units at newer condos near the Lakeside MRT station such as The Lakeshore went for a median price of $730 psf. They commanded monthly rents of $4 psf, providing an attractive average yield of 5.8 per cent. Savills Singapore noted that prices at The Lakeshore jumped 40% to around $803 psf on average in the first quarter of this year compared with the first quarter of last year. Properties in the Jurong Lake District area present 'relatively attractive investments', as they cater to a niche leasing market, made up of foreign white-collar professionals who work at the International Business Park.

- The Straits Times, P24, April 13



Data for new home sales will be out
Property developers will release their figures on the numbers and prices of new private homes they sold last month on the URA’s website tomorrow. It will also reveal the lowest, median and highest prices of the units sold in each project for March. Experts expect the March figures to affirm the trend of new home sales stalling in recent months as the housing market comes almost to a standstill. February's figures showed that only 185 new homes were sold in that month - the lowest level since last June. These weak sales were likely to have continued in March, which could take the total number of new-home sales in the first quarter to one of the lowest levels ever seen here.

- The Straits Times, P18



Property sector ‘facing uncertainties’
Many agreed 2008 would be a quieter year for China’s property industry, even though the US sub-prime crisis would hardly deal serious blows to the domestic real estate market. Government data had projected a slowdown in the rise of property prices since January, with price declines registered in some cities. In Shenzhen, the cradle of the country’s real estate industry, developers who used to buy up land over the past few years had suddenly turned prudent this spring, evidenced by the increasing plots of land failing to be auctioned off. China’s four listed largest developers all reported a five-year low in cash flow from operating costs per share in their 2007 financial reports. But dean of the policy research office of the Ministry of Housing and Urban-Rural Construction said that the urbanization in China is a long-term strategy that will last 20-30 years and will not be easily affected by individual events like the US sub-prime crisis.

- The Business Times, P28



Inflation in Gulf hard to control: UAE
The US dollar’s decline is making it harder for Persian Gulf nations to control inflation. The UAE and its neighbours are under pressure to stop pegging their currencies to the dollar as it trades close to a record low against the euro after the Fed’s interest rate cuts. Like other states in the world’s biggest oil-exporting region, except Kuwait, Oman’s dollar peg constrains its fight against inflation because it forces it to track US interest rate cuts.

- The Business Times, P35



Ordyn sets up R&D centre in Singapore
Drawn by Singapore’s robust legal framework for the protection of Intellectual Property, Bangalore-based telecom equipment maker Ordyn Technologies has announced plans to set up a research and development (R&D) operation here. Ordyn’s chief operating officer and co-founder said that Ordyn’s Science Park Drive office will be transformed to include a principal architecting center. Besides the favourable research climate here, Singapore’s popularity as a working destination for foreign talent is another reason why Ordyn is ramping up operations here. The company also plans to establish Singapore as its international headquarters and make Singapore the company’s global supply-chain centre. Ordyn has also established offices in Malaysia, Indonesia and Dubai in the past year.

- The Business Times, P46