News Highlights Monday 7th April 2008

Another 60 units sold at City View
City View @ Boon Keng has sold an additional 60 units under a walk-in selection process that ended yesterday. In all, 520 units out of 714 have been sold. The project is still open to the public for sale and can be bought only by families earning no more than $8,000 a month. The units cost between $349,000 and $727,000 each. The take-up for City View has been a major talking point because the overwhelming response from potential home buyers has not translated into actual sales.

- The Straits Times, H19



Brokers’ Choice – Citi upbeat on mass market homes
Citigroup noted that while transaction volumes in residential property sales have waned, active participation in a recent West Coast site suggests that developers are still positive about the mass market segment. Citigroup maintains its view that prices in the mass market segment will rise between 5 and 15% in 2008.

- The Straits Times, H19



Analysts staying upbeat on construction stocks
Despite the upward cost spiral of raw materials such as steel and granite, analysts believe strong orders from both the public and private sector will underpin the construction sector. The Building and Construction Authority projects that some $23-27 billion worth of construction contracts to be awarded this year. But analysts are pointing to the challenges ahead for this sector. Recent downside risks are emerging in the form of higher raw material costs, further exacerbated by increasing global demand for building materials. According to CIMB-GK, escalating construction costs are leading to higher breakeven prices, with construction cost for an average luxury condominium development estimated at $450 psf.

- The Business Times, P4



Boom in Taiwan property if Ma keeps China vow
The property market in Taiwan is set for a boom if president-elect Ma Ying-jeou can improve relations with mainland China and stimulate the island’s sluggish economy. Market watchers expect a rise of 20% or more in prices by the end of 2008. Luxury residential property prices jumped one-third after Ma’s victory and site visits by potential homebuyers were up 30-40% in recent weeks. A survey by North Rehouse, a Taipei property firm, found that 67% of mainland investors were willing to buy real estate in Taiwan once restrictions are eased, and predicted prices would go up 30-50% by year-end. A more relaxed China policy will encourage Taiwan investors on the mainland to repatriate their profits back home without controls, which will benefit the local property market.

- The Business Times, P18




Singapore fitness firm draws Dubai investor
Dubai International Capital (DIC), one of the world’s largest sovereign wealth funds and the international investment arm of Dubai Holdings with more than US$12 billion in assets under management, has acquired a significant stake in the True Group, a provider of wellness services. The investment was part of DIC’s strategy of selecting market leaders in a diverse range of sectors and increasing its focus on Asia as a key driver of growth.

- The Straits Times, H18