News Highlights Thursday 15 May 2008

4 bungalows sold for $5.5m each
Four strata bungalows in a freehold cluster housing development near Eng Neo Avenue were snapped up at $5.5 million each by a European with a Singaporean wife. The $22 million transaction works out to $1,128 psf of built-up area. The units were bought partly for the buyers' own use and partly for investment. The bungalows, expected to be completed early next year, are developed by Region Development on a 12,300 sq ft site at Vanda Crescent off Dunearn Road. Built-up areas range from 4,844 sq ft to 4,919 sq ft. Cushman & Wakefield (C&W) brokered the sale of a four-bedroom unit on the 17th floor of The Grange for $6.2 million or $2,692 psf. C&W said there's support for prime residential properties which appeal to foreign investors and where yields are fairly attractive


- The Business Times, P38






Live and work under one roof
With more multiple-usage buildings being built in Singapore, there is an unmistakeable trend in that direction. One example is Ion Orchard, currently being constructed next to Orchard MRT station. While eight of its eventual 56 storeys will be retail space, the rest of the floors will be luxury residential apartments. While some relish the idea of living above a shopping mall, not everyone may be sold on it due to privacy, security and noise pollution concerns. Still, smart architectural design to maintain privacy and keep out noise pollution can somewhat mitigate those concerns with residents.


- The Business Times, P36






S'pore the second most competitive economy
Singapore remains the world's second most competitive economy but is closing the gap on the top-ranked US. The World Competitiveness Yearbook (WCY) by a Swiss business school gives Singapore a score of 99.33 in its 2008 study, up from 99.12 last year. Singapore is third on economic performance (up from fourth last year); second on business efficiency (fourth in 2007); and retains for the second straight year its first and third places on government efficiency and infrastructure, respectively.


- The Business Times, P2








Sino Land project 60% sold as mortgage costs fall
Hong Kong existing home sales rose last week and Sino Land sold almost 60% of the new apartments at its Palazzo development in the city's Shatin district, as low interest rates spurred demand for housing. Mortgage costs in Hong Kong have fallen below the inflation rate this year, fuelling a property boom. Average prices for residential apartments smaller than 1,000 sq ft rose 15.6% in the first quarter from the end of 2007. Sino Land sold more than 800 apartments at its Palazzo project in the first four days when sales started. Existing home transactions rose 22% to 361 in April from a month earlier.


- The Business Times, P37






Natural disasters won't dent Asia property allure
European property investors, who say opportunities to make double and even triple-digit percentage net returns in Asia's most promising real estate markets more than offset worries about natural disasters. Asian commercial property transaction volumes rocketed 27% to US$145 billion in 2007, on the back of an 87% rise in foreign investment to US$73 billion, according to Cushman & Wakefield. C&W said investment volumes were expected to rise again this year.


- The Business Times, P35






CDL offers words of cheer
City Developments (CDL) is confident of remaining profitable during the next 12 months. For the first quarter ended March 31, 2008, profit before tax from property development rose 49.1% from the same year-ago period to $155.1 million on the back of higher profit margin achieved for projects launched in recent years and profit recognised from The Oceanfront @ Sentosa Cove, Ferraria Park, The Sail @ Marina Bay and St Regis Residences. The group has lined up four projects for launch once sentiments improve – Shelford Suites; The Arte @ Thomson; the first phase of a condo at Pasir Ris; and The Quayside @ Sentosa Cove. CDL said that it is expediting the construction of two office projects in Tampines. One is the three-storey Tampines Concourse, and the other is 9 Tampines Grande.


- The Business Times, P5






Inflation is Asia's greatest concern: Merrill
The greatest concern for Asia is inflation rather than the impact of crumbling American consumer demand on the region's growth, said Merrill Lynch economists. Asia's growth is not likely to be as badly hit, said Merrill Lynch's chief Asia economist. The region's growth is not as strongly linked to the US economy as it is to the European Union.


- The Straits Times, H23






Global economy will not recover before 2009: IMF
While a large part of a global financial crisis was probably over, the International Monetary Fund (IMF) chief does not foresee an end to the economic slowdown before next year. He noted that emerging markets were doing well despite problems in the United States and other developed economies.


- The Business Times, P14






Wheelock's Q1 profit drops 33.9% to $16.9m
Wheelock Properties Singapore posted a 33.9% year-on-year drop in first-quarter net earnings to $16.9 million but said that it is in a strong financial position to take advantage of opportunities that may arise. Q1 revenue slipped 31.1% to $64.8 million. Wheelock attributed the lower top and bottom lines primarily to lower contributions from units sold at The Sea View and The Cosmopolitan condominium developments. Wheelock has sold more than 70% of the units at Scotts Square, achieving an average price of $3,994 psf. Wheelock expects to sell the remaining units progressively over the next two years. Scotts Square is slated for completion in 2011. Orchard View is expected to be completed and launched in 2009. Ardmore 3 is also expected to be launched next year. The first phase of The Sea View received a Temporary Occupation Permit (TOP) last month. TOP for Phase II is expected in mid-2008. The Cosmopolitan, on the corner of River Valley and Kim Seng roads, is expected to be ready in Q3 this year.


- The Business Times, P9






8 Rodyk
- Officially launching this holiday weekend (May 17-19)
- Interest absorption scheme, subjected to loan approval by bank
- Stamp duty absorption
- Offer ends May 19
- Developer: New Century Real Estate


- The Business Times, P11