News Highlights Friday 6 June 2008

Little choice but to offer less choice sites
The Government Land Sales (GLS) programme announcement is around the corner and property industry players are again voicing calls for the government to reduce its quantity of land sales and to offer sites only through the reserve list, instead of the confirmed list. The focus must also be on the quality of sites on offer. There are enough high end private residential sites, so the government need not supply more land in the prime districts. For the mid and mass markets, the locations in demand are near MRT stations, with water views, and/or in close proximity to shopping centres, schools and other amenities. CBRE’s update of the H1 2008 programme shows that 5 private residential sites in choice locations outside the city have been sold through the confirmed list. A moderation of land sold by the government would lend some support to the market and provide some relief to the overheated construction sector.

- The Business Times, P1




Life in a self-contained township
The 200-hectare one-north around Buona Vista, which includes Biopolis and Fusionoplis, aims to be a place where residents can work, live, learn and play. One-north’s concept and proximity to a research and development hub, are a draw for researchers, academics and professionals, said Savills. 2 residential projects are under construction at one-north – one-north Residences (about 400 residential units) and The Rochester. The Rochester is a mixed development that will comprise a condo with 366 units, a business hotel and a mall, to be completed by 2011. Knight Frank said that demand for housing in one-north will be great for expats who work there.

- The Business Times, P7




The only way is up?
The three-month Singapore Interbank Offered Rate (Sibor) is at 1.3%. That is still a remarkably modest rate, but it is up from the 12-month low of 1.25% a few days ago. Economists expect rate rises to be tiny, but home owners might think it smart to refinance mortgages before rates creep up. An Asian strategist at Deutsche Bank Private Wealth Management expects rates to rise to 1.4% in 12 months and to go back to above 2% in three years. Home owners might think it prudent to switch to a fixed-term mortgage as rates are linked to the Sibor.

- The Straits Times, H30





Time-wasters steer clear of BTO projects
The launch of 1,485 premium flats in Compassvale Pearl in Sengkang and Punggol Sapphire closed with 4,050 applications - still oversubscribed but at about half the level seen before the new rules kicked in. Compassvale Pearl received 977 applications for the 420 flats on offer, and Punggol Sapphire attracted 3,073 bids for 1,065 flats. That put the ratio of applications to flats at 2.3 in Compassvale Pearl and 2.9 in Punggol Sapphire. Chesterton International believes there is a lot of pent-up demand in the market and it was likely the HDB could see higher take-up rates from more serious buyers.

- The Straits Times, H1




S'pore private firms making major inroads into Russia
Singapore’s private sector is moving into Russia at a phenomenal rate, with companies in the real-estate and retail sectors securing the bulk of the deals. Business will be spurred further with the conclusion of double taxation and investment guarantee agreements between the two countries. They are expected to take effect by the end of the year. There are now 149 Russian companies in Singapore, up from 120 last year. Likewise, well-heeled Russians are making their way to Singapore in droves. Last year, 44,000 visited the country and the Singapore Tourism Board expects the number to jump 10% this year.

- The Straits Times, P36




Silicon Labs open its new global HQ
Semiconductor giant Silicon Laboratories yesterday officially opened its new international headquarters at Serangoon North Ave 5. This shift reflects the company's effort to expand its design and R&D operations here.

- The Business Times, P10




Irish engineering group sets up Asia HQ here
Ireland’s leading engineering and project management firm, the PM Group, has established its Asia Pacific headquarters in Singapore. The group expects to expand its Singapore headcount from 35 to 50 highly skilled staff. It will operate from the International Business Park in Jurong.

- The Business Times, P10



Cautious Stanchart opts to grow boldly
Standard Chartered Bank will continue to grow the business and hire more people despite the financial market turbulence. Singapore’s current 4,700 staff will be boosted by 500 by year end.

- The Business Times, P3




Jakarta ups rate by smaller than expected 1/4 point
Indonesia's central bank increased its benchmark interest rate for a second straight month. Costlier food prices and and oil pushed Indonesian inflation to 10.4% last month.

- The Business Times, P13




­ ST Index change 3,143.89 (+9.09)
SIBOR (3 mths): 1.30000 (S$)
SWAP (3 mths): 1.42496 (S$)