News Highlights Friday 9 May 2008

Developers test waters with condo launches
Developers are testing the water for residential launches this week. Far East Organization's listed unit Orchard Parade Holdings and Wing Tai have begun the official launch of their Floridian condo, marked by the start of an advertising campaign. The average net price is in the range of $1,600-1,700 psf after discounts. The preview for the development began a few months ago, with six units sold at $1,640-1,770 psf. Another freehold project being previewed this week is Quartet on Vanda, a cluster development of four bungalows in Vanda Crescent off Dunearn Road (near Eng Neo Avenue), developed by Region Development. Built-up areas range from 4,844-4,919 sq ft. The units are understood to be priced around $6 million each. In the eastern part of Singapore, Tiong Aik have begun the preview of Parc Seabreeze in the Marine Parade/Joo Chiat area last week. The average price for the freehold project is understood to be in the $1,600-1,700 psf range.

- The Business Times, P7




Raffles Hotel looks set to be sold at hefty price tag
Mystery buyers are acquiring Raffles Hotel at about $650 million - significantly more the $200 million it sold for three years ago. The hotel and the adjoining shopping arcade are changing hands again after a consortium led by a prominent former Credit Suisse banker agreed to buy the property. The dramatic jump in value of the property is the result of Singapore's booming hotel industry, market watchers say. Average room rates are now about $240, way up from $136 in 2005.

- The Straits Times, H26




Royal Peacock Hotel in Chinatown could fetch around $38m
The Royal Peacock Hotel in Chinatown's Keong Saik Road is likely to be sold soon - with a potential price tag of about $38 million, which is more than $500,000 a room. A five-star hotel typically sells for $700,000 to $800,000 a room, said Cushman & Wakefield. The bidders for the Royal Peacock, most of whom are foreigners, are not existing hotel players in Singapore.

- The Straits Times, H26




Ho Bee Q1 net earnings dive 62% to $26.1m
Ho Bee Investment reported a 62% plunge in net earnings for Q1 2008, to $26.1 million, from $69.1 million in Q1 2007. The drop in group turnover was largely due to lower revenue from The Coast at Sentosa Cove. The Coast project recognised revenue of $26.5 million in Q1 2008, down from $209 million in Q1 2007. This was the main reason for property development revenue falling 64% to $88 million. Turnover on property investment fared better, driven by higher rental income from office units at Samsung Hub and industrial buildings at HB Centre II and One Tannery Road.

- The Business Times, P5




IMF, US economist see dim global, China growth
IMF has adjusted its 2008 growth forecasts downwards to just above 9% for the Chinese economy and below 4% for the global economy. A China economist at UBS said that China's economy is on course to grow 9.5-10% this year and 9-9.5% in 2010.

- The Business Times, P12




Merrill Lynch CEO upbeat on prospects
India offers one of the most rewarding opportunities for growth in spite of recessionary conditions in the US, Merrill Lynch's chief executive said. India, led by strong local demand, will be relatively less affected by the global credit crisis and will continue to command more attention in terms of foreign direct investment. India is forecast to grow by more than 8% in the year to March 2009.

- The Business Times, P14




Dynamics of the global economy are changing
Disruptive financial market turmoil is slowing growth in advanced economies. But emerging market economies have provided a measure of global resilience, although this has led to a boom in food and fuel prices. In an increasingly globalised economy, growth spillovers from advanced to emerging and developing economies remain sizeable.
- Deputy director and adviser in the Research Department of the International Monetary Fund


- The Business Times, P14 – Editorial & Opinion