News Highlights Thursday 22 May 2008

S'pore luxury homes ninth most expensive globally
Luxury homes in Singapore are the second most expensive in Asia and the ninth most expensive in the world. According to a report by Citi and Knight Frank, luxury home prices here are now US$2,423 per sq ft. The global luxury home market is supported by jet-setting high net-worth individuals. It found that 15.7% of entry-level high net-worth individuals own four or more homes. In the second, third and fourth (the richest) categories, the respective percentages increased to 23.3, 31.5 and 60%. The report found that in both developed and emerging economies, uncertain economic and political conditions did not affect the growth in numbers of high net-worth individuals. Knight Frank said that almost any residential market tied to the global economy maintains confidence among purchasers.

- The Business Times, P34



Real estate arm of Qatar SWF eyes Far East, Europe
Qatar's US$40 billion property investment arm said on Tuesday that it had bought a French industrial firm for 1.5 billion euros (S$3.2 billion), planned to develop a US$2 billion project in Hong Kong and had set up a US$3 billion global fund. The real estate arm of sovereign wealth fund Qatar Investment Authority expects 25% annual growth in its business. Qatari Diar is part of the country's Qatar Global Fund - with other Qatari investors - of which 30% will be invested in real estate in China, Vietnam and Cambodia.

- The Business Times, P33



Leisure Island


URA revealed an ambitious blueprint to make Singapore a great place to work, live and have fun in. Under its Leisure Plan, 900ha of new park space and 260km of park connectors will be added in the next 10 to 15 years. The plan also includes an uninterrupted 150km round-island cycling and jogging route. The Kranji and Lim Chu Kang area which is earmarked to be developed into a leisure hotspot will become a 'countryside' retreat. To inject more buzz into the city, especially at night, URA also hopes to kick-start after-dark activities with a new Night Festival. The Leisure Plan is part of a bigger blueprint, the 2008 URA Draft Master Plan.
- The Straits Times, P1
Plans to up countryside charm in two areas
Lim Chu Kang and Kranji have been earmarked for several new leisure activities to turn the areas into a 'weekend refuge' for urbanites. Three new sites will be released for the 'agri-tainment' business, a sector that includes farm stays, countryside spas and centres that teach urban dwellers the appeal of farming. In Kranji, land will be set aside for two new parks totalling 21ha.

- The Straits Times, H8




Cranking up the night-time buzz
With Singapore's first Night Festival in July, Singaporeans can pay a midnight visit to a museum, dance the night away at a street party or take in an open-air performance. Improved night lighting, new street fixtures and more public spaces for night activities will follow in four key areas: Orchard Road, Singapore River, Bras Basah/Bugis and Marina Bay. The Night Festival, which is being developed by the National Heritage Board, will be held in the Stamford Road and Bras Basah area over two weekends: July 18 and 19, and July 25 and 26.

- The Straits Times, H8



Leisure Plan promises fun times ahead
Built on the 2003 parks and waterbodies and identity plans, the Leisure Plan aims to enhance Singapore's quality of life. Among other developments, there will be park connectors and trails from Changi to areas such as Punggol, Lim Chu Kang, Jurong Lake, Marina Bay and back. The development of recreational venues will likely see higher demand and a sustainable price increase over the longer term, said Cushman & Wakefield. Savills said that a planning approach that packages work and play around daily activities in one area will mean premium property prices in the area.

- The Business Times, P4



Hopes of property market rebound fading
Hopes that a slowdown in Singapore's property market is temporary are fading as an uncertain economic outlook and a housing glut threaten to cause a prolonged downturn in the sector. Homebuilders have delayed launching new projects and home prices are expected to fall 30-40% over the next three years. First quarter 2008 sales volumes slumped to the lowest in five years and price growth slowed for two straight quarters. A Barclays Capital economist said an impending oversupply will worsen the problem, with 66,000 new homes expected to be completed over the next four years. The three-month Singapore Interbank Offered Rate has fallen to below 1.3%, but that may not be enough to revive buyers' flagging confidence, said economists. Some developers are still counting on home prices to rise for at least another year, as they see the market in the middle of an upswing.

- The Business Times, P9



Singapore is 29th most peaceful country
Singapore moved up two spots in a global index which measures how peaceful countries are. It ranks 29th out of 140 countries in the Global Peace Index, which aims to link peace to prosperity. When ranked against its neighbours, Singapore is No. 6 among 25 countries in Asia and Australia. Its improved position is due to its favourable score for the proportionately low number of refugees. Singapore scored well in areas such as its lack of internal conflict, likelihood of demonstrations and political instability.

- The Straits Times, H10




Only 10% of S'pore firms hit by corruption
Just one in 10 firms polled in Singapore has experienced an incidence of bribery or corruption in the past two years - well under the global average of almost four out of 10. Singapore companies were more likely to see the laws and regulations against graft strongly enforced compared with other companies around the world. Professional services firm Ernst & Young compiled the fraud survey by interviewing 1,200 senior executives in large companies across 33 countries from last November to February.

- The Straits Times, H25



No takers at all for hotel site in Little India
A hotel site on top of the Little India MRT station had yet to attract a single offer – the first time in seven years. Chesterton International suggested that the Little India site failed to draw bids because of the area's 'image problem' and the crowds. Savills Singapore said the problem might lie with 'budget' hotel plots, with its difficulty to generate good profits due to higher construction costs. Knight Frank said that the overall property market is getting more uncertain, and developers or investors may think that it's too risky to commit. The market could also be saturated with hotel sites. The Little India site is one of two hotel plots on the URA's 'confirmed list' of land sales for the first half of this year. The other hotel site on the confirmed list is at Balestier Road.

- The Straits Times, H25



Disaster won't derail China's rapid growth
The massive Sichuan earthquake may have caused serious economic damage, but it will not derail China's rapid economic progress. Economic fundamentals will not be affected by the earthquake, even though direct economic losses from the disaster will amount to about 67 billion yuan, or 0.27% of last year's GDP. The quake could make fighting inflation more complicated, particularly as Sichuan is a major source of coal and natural gas.

- The Straits Times, P10