News Highlights Saturday 12 April 2008

Issues of cost, procedures bubble up in new en bloc rules
The Ministry of Law is planning a review soon of the revised en bloc legislation, which took effect on Oct 4 last year. Property agents and lawyers said that the new rules, while introducing more safeguards and transparency for owners, have made the en bloc process longer, more tedious, and increased costs for owners. The total cost (including legal fees) of a collective sale to an owner may have doubled or increased beyond that. With weaker sentiment today and a slimmer chance of success of an en bloc deal, the increasing tendency among property consultants is to pass costs such as development baseline searches upfront to owners, instead of bearing them first and then seeking reimbursement later. Some owners baulk at having to make upfront payments and that may prove to be a stumbling block to en bloc sales, said Savills.

- The Business Times, P1



Cashless shopping now easier for Chinese visitors
United Overseas Bank (UOB) has just signed an agreement with China’s national card network operator, China Unionpay (CUP). The deal will allow Chinese visitors to make payments in Singapore using CUP credit and debit cards. The service is available at merchants who sign up with UOB, which currently has 17,000 merchant establishments under its wing. The deal also gives the 1.4 billion CUP credit and debit card holders the convenience of cashless transactions in their own currency, and special discounts offered by UOB merchants. CUP cardholders can also get cash from ATMs at Singapore’s three local banks: UOB, OCBC Bank and DBS Bank. Last year, more than a million Chinese tourists visited Singapore – the second-largest group of foreign visitors after Indonesians – and spent more than $1.1 billion. UOB and CUP are also set to launch a new credit card by the end of this year, which will allow Singaporeans to pay for purchases made at retailers worldwide which accept CUP cards.

- The Straits Times, S32



Blow for Indian government as inflation soars
Inflation in India has jumped to a 41-month high of 7.41%, fanning expectations of more monetary tightening that would further hit economic growth. Annual inflation quickened to 7.41% for the week ending March 29 from 7% the previous week, according to the Wholesale Price Index. The data coincided with other figures showing industrial output growth slowing in February to 8.6% from 11% in the same month a year earlier. Industry has been hit by a slew of interest rate hikes to curb inflation which have hit consumer demand. The rate hikes have already dampened the economy by driving up loan costs. Economic growth is seen slowing to as low as 7% in the fiscal year to March 2009 from around 8.8% last year.

- The Straits Times, P22



The Adara – advertisement
- Freehold, foreigners eligible
- Near Parkway Parade, East Coast Park and Siglap/Katong eateries
- 1 + 1, 2 & 3 +1 bedroom units and penthouses
- Developer: Roxy Homes Pte Ltd

- The Straits Times, H3



The Verte – advertisement
- 35 apartment units and 1 townhouse
- Selected units with private pools and Jacuzzi
- Next to Telok Kurau Park, 5 minutes to Kembangan MRT
- Freehold, foreigners eligible

- The Straits Times, H3



Asia is still hitched to US train, warns IMF
The IMF report on the Regional Economic Outlook for Asia and the Pacific said that Asia has not de-linked and spillovers from turmoil and recession elsewhere could be significant. Forecasting a 1.25% point drop in overall Asian growth to 6.2% in 2008, the report says risks to the outlook remain on the downside and chief among these is a further credit market-led deterioration of global financial conditions. Any deepening of credit turmoil could hit Asian equity and other asset prices, as well as consumer and business confidence, and send borrowing costs soaring. Economic activity across much of the Asia-Pacific region remains fairly buoyant and domestic demand is still robust. But key activity indicators in recent months suggest that momentum is easing.

- The Business Times, P2



CapitaLand-led group lands $2b property loan
The largest syndicated residential property development loan ever arranged in Singapore - $1.996 billion – has been issued to CapitaLand-led consortium that clinched Farrer Court. The five-year facilities have been fully underwritten by DBS Bank, UOB Asia, Standard Chartered Bank, OCBC and Royal Bank of Scotland. The proceeds will be used to refinance the acquisition cost of the site and to partly finance the development and construction of a new condo on it. CapitaLand has a 35% stake in Morganite Pte Ltd, a joint venture it set up with Hotel Properties Ltd, Morgan Stanley Real Estate Special Situations Funds III and Wachovia Development Corporation to acquire Farrer Court for $1.3388 billion – the biggest ever collective sale in Singapore. The consortium plans to build a 36-storey condo designed by Pritzker Architecture Prize winner Zaha Hadid. The 99-year leasehold project, with about 1,500 units, is expected to be launched next year.

- The Business Times, P5