News Highlights Friday 30 May 2008

HDB resale price growth expected to remain low
The rate of price increase of HDB resale flats will further decelerate in the next 6-9 months, resulting in a relatively moderate 4-10% growth for the whole of 2008. HDB's resale price index increased in Q1'08 by 3.7% over the previous quarter. Median COV of all resale flats, which fell to $21,000 in Q1'08 from $22,000 in Q4'08, could continue to fall this year. The number of potential HDB upgraders - a significant factor in private mass market housing - could fall with decreasing HDB resale transactions. Knight Frank said that HDB upgraders have been supporting the private secondary market, which saw 3,521 units transacted in Q4'07. In Q4'07, the greatest number of private secondary market transactions occurred in the Outside the Central Region, and was attributable to the HDB upgraders.

- The Business Times, P8




S'pore could be gas pricing hub
Already a major international oil pricing hub, Singapore has the credentials to become an international gas pricing hub too. In July this year, Singapore will launch its liberalised gas market, making Singapore the only country in the Asia-Pacific with such a deregulated gas market. The Energy Market Authority will introduce a Gas Network Code governing market players' behaviour and licences for importing, shipping, retailing and transporting gas.

- The Business Times, P8




US GDP grows a weak 0.9% in Q1
The US economy grew at a 0.9% pace in the first quarter - slightly better than estimated - but still underscoring caution on the part of consumers and businesses. The figure did not meet a definition of recession, which is two straight quarters of shrinking GDP. Top forecasters at the National Association for Business Economics predict that the economy will grow at a 0.4% rate during the April-to-June period, which is expected to be the weakest quarter of the year.

- The Business Times, P2




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