News Highlights Wednesday 9 April 2008

Property agents in race against en bloc clock
Property agents are expected to keep pushing out a steady stream of relaunched en bloc sales over the next few months, before their collective sales agreements (CSAs) inked last year expire. Asking prices for such sites this time round are about 10-20% lower than last year. Data from Credo Real Estate show there were 14 en bloc sale sites launched in Q3 last year but which are still unsold, while another 30 launched in Q4 last year have yet to find takers. From the time the minimum 80% consent level is secured for a CSA, agents have up to 12 months to find a buyer and submit an application to the Strata Titles Board for an order for the collective sale. Colliers International said that owners and agents will be expected to take another shot at the market because if they do not do so, the CSA expires and subsequent attempts at an en bloc sale will fall under new rules that are more onerous.


- The Business Times, P1




Private bankers upbeat despite credit crunch
Bankers catering to the well-heeled in Asia expect growth almost akin to that of last year, as they hunker down to squeeze yet more productivity out of their relationship managers. Merrill Lynch head of global wealth management (Asia Pacific) said that there is growth overall in Asian economies despite what is happening in the US. Credit Suisse also said that their Asia Pacific Banking operations have been enjoying very strong momentum and this is expected to continue in the next 2 years, with the objective of doubling the Asian business. Boston Consulting Group director said that private banks’ relatively low penetration of Asian markets represent opportunities. Household wealth across Asia comes to US$16 trillion.


- The Business Times, P1





Prices of high-end condos starting to fall as sales dwindle
Early signs of the slide lie in the handful of caveats filed involving many luxury projects in the first quarter. These showed prices fell from the previous quarter, in some cases by up to 20%. In Districts 9 to 11 covering Orchard, Holland and Bukit Timah, average prices have fallen by about 30% since the beginning of the year, according to caveats. They dropped to an average $1,564 psf between January and March from $2,023 psf in the preceding three months. Property experts say this could be because luxury home buyers are now selecting only the most competitively priced properties. DTZ Debenham Tie Leung said high-end properties in the traditional prime districts were more dependent on investor buying, so they could be more affected by the current global credit crunch and weaker sentiment. Property insiders and caveats lodged showed that prices of many projects fell rather than rose this year. At Scotts Square in Scotts Raod, only 2 units have been sold this year – at an average price of $3,700 psf, down from $4,000 psf for 42 units in last year’s forth quarter. But the story is not all bad. The Orchard Residences has sold one unit at $4,700 psf, higher than most of its other sales. Savills suggested that other older condos in areas such as Cavenagh may also be trading at higher prices, pushing up overall prices for the whole district. But Savills also said that the price index for high-end homes may be under pressure in the next two quarters.

- The Straits Times, H24





Fewer home loans taken up as property market cools further
Only 4,200 new home loans were approved in January, up about 13% on the 3,722 in December but down 21% from the peak of 5,319 last August. The Credit Bureau of Singapore figures also show that 2,544 second mortgages were taken up in January, a 31% drop from 3,698 last August. Banks have seen a reduction in applications for new home loans, reflective of the sentiment towards the property market. But Maybank and OCBC have seen more people re-mortgaging their home to take advantage of the declining interest rate environment. The Credit Bureau figures also revealed that the number of delinquent account holders has fallen to 4,636 or just 1.63% of total mortgage holders. There were 7,404 home owners with outstanding balances on their mortgages of over $1 million in January – an 81% jump over February last year.

- The Straits Times, H23




New chapter in research and education
Prime Minister Lee Hsien Loong broke ground for a $180 million building that will be completed in 2010. Called the Centre for Translational Medicine, the 15-storey tower will bring students, researchers and clinicians together under one roof. Located close to National University Hospital (NUH) and Yong Loo Lin School of Medicine, it can accommodate 500 researchers and staffs. The new building will house the Cancer Research Centre of Excellence.

- The Business Times, P4





S’pore seen posting strong Q1 GDP growth
Business confidence may be weak but the domestic economic growth outlook remains strong, according to at least two economists. Daiwa Institute of Research’s chief economist said that business confidence may have weakened, but the activity indicators suggest little weakness in the economy, citing the commerce, transport and communications sectors in particular. He has forecasted first-quarter GDP growth of 8.4%. The Ministry of Trade and Industry will release advance estimates of Q1 growth – based on January and February data – tomorrow.

- The Business Times, P12




Confirmed: Tulip Garden’s en bloc sale to Bravo rescinded
Tulip Garden’s owners have rescinded the $516 million en bloc sale of the estate to a unit of Bravo Building Construction. Bravo had requested extension to pay the second 5% instalment from April 7 to June 7, as well as to extend the completion date of the transaction. But Tulip Garden owners indicated they wanted to cancel the sale if Bravo missed the payment deadline on April 7.

- The Business Times, P12