News Highlights Friday 16 May 2008

Further drop in new home sales and launches in April
The private home market continued to weaken last month, with launches of new homes falling. Sales volumes and median prices also dipped, according to monthly figures released by the URA. Developers launched only 271 homes last month. The number of homes sold also fell, to 274 in the month, from 322 previously. Knight Frank found median prices of new homes sold last month had slid 9% to $943 psf, from $1,035 psf in March. One reason for the lower prices could be that most of the homes launched and sold were in cheaper mass-market developments. However, latent demand remains strong, especially for the mass-market projects that are reasonably priced between $750-850 psf, said Jones Lang LaSalle. CBRE expect sales to start improving next month as developers begin stepping up launches and Savills Singapore said buyers are starting to return to the market.

- The Straits Times, H28




Interest in Asian property seen growing
The Government of Singapore Investment Corp's (GIC) real estate arm is confident about investment opportunities in the Asian property markets. Massive build-up of investment funds in the world, and the attraction of Asia as a growth region of the future will ensure continuous global interest in Asian real estate, said GIC Real Estate. GIC Real Estate had in March, through its affiliate Reco Hotels JV Private Ltd, entered into a joint venture with Host Hotels & Resorts Inc to explore investment opportunities in Asia and Australia.

- The Business Times, P4



Leng Beng says S'pore real estate market sustainable
Hotel and property tycoon Kwek Leng Beng believes Singapore's real estate market is sustainable and further investment opportunities lie ahead. With two integrated resorts and big events such as the Youth Olympics in the next few years, Mr Kwek reckons the future is bright for Singapore real estate. According to Jones Lang LaSalle Singapore, the current slowdown in property demand is largely sentiment-driven, and many investors are probably waiting to purchase at better prices. Mr Kwek also thinks that by 2010 and 2011 there will not be an oversupply of office supply because construction is a problem here.

- The Business Times, P10



CDL reveals what it does for society and environment
City Developments Ltd (CDL) yesterday launched its first annual report focusing on the property developer's impact on the environment. According to the report, CDL invests 2-5% of the construction cost of a project in environmentally friendly 'green' design and features. The company said it aims to track and measure its social and environmental efforts and performance against international benchmarks, and is setting up a formal corporate social responsibility committee comprising senior management that will report directly to Mr Kwek.

- The Business Times, P10




US sub-prime crisis hurting Asian property: GIC
THE sub-prime crisis in the US is starting to weaken Asian property markets, particularly in Japan and Australia, said the real estate arm of the Government of Singapore Investment Corporation (GIC). In Japan, the stock of unsold apartments is rising, while housing starts fell 15.6% in March from a year ago. On the bright side, the sub-prime crisis presents opportunities for well-positioned players.



- The Straits Times, H28




Indonesia's Q1 GDP up 6.28%
Indonesia's economy expanded in the first quarter by 6.28% from a year ago - much the same as in the previous quarter thanks to healthy exports and investment. The central bank raised its benchmark interest rate by 25 basis points to 8.25% last week to fight inflation, and economists expect it to tighten further. Analysts expect economic growth to slow in the second quarter due to probable increases in interest rates to fight inflation. Annual inflation in April was nearly 9 per cent, the highest since September 2006.

- The Business Times, P13




Hollywood firm to set up regional base in Singapore
A Hollywood production company, Hyde Park Entertainment, is setting up a regional base here with a $75 million fund to bankroll films. Hyde Park expects to have a site for its Singapore office nailed down within the next few months with hiring to start soon after.

- The Straits Times, H30