News Highlights Thursday 5 June 2008

4 sites relaunched for collective sale at lower prices
PropNex Realty is relaunching four sites for en bloc: Cavenagh Gardens in Cavenagh Road, Novena Hill in the Novena area, Seletar Gardens along Yio Chu Kang Road and Hong Thye in Geylang. It hopes a hefty asking price cut of up to 30% will attract buyers. Market observers said that even if the sellers have lowered their pricing expectations, there are other issues to consider, such as the construction bottleneck.

- The Straits Times, H24




Four en bloc sites back on market with lower tags
Four collective sale sites are back on the market, with price expectations lower than when they were offered in Q4 last year. Propnex, which is marketing the four sites, thinks that although the property market is relatively quiet, that there are pockets of pent-up demand. The four sites are:
- The freehold Cavenagh Gardens near the Istana could fetch $450-455 million or $1,671 to $1,689 psf ppr – 27% lower than the expected price last October. The site could yield 155 units with an expected breakeven cost of $1,915 psf and an expected selling price of $2,200 psf.
- The freehold Hong Thye at Lorong 39 Geylang could fetch $12-$13 million or $359-385 psf ppr, including development charge. With a potential GFA of 38,702 sq ft, the site could house 40 units with an expected breakeven cost of $709-735 psf, and an expected selling price of $780-809 psf.
- The expected price for the freehold residential site at Novena Hill is $42-45 million or $1,170-1,254 psf ppr. The site, with a potential GFA of 35,885 sq ft, could yield 40 boutique apartments.
- The last site, Seletar Garden in Yio Chu Kang Road, is an estate in perpetuity. The mixed-development site could fetch $50-55 million or $488-537 psf ppr.


- The Business Times, P28




Singapore safe place to do business: study
Singapore is a very safe place to do business, according to findings from French credit insurance firm Coface's Business Climate@ratings. The study provides two ratings for 150 countries - a rating on risks inherent in the business climate, and a more holistic rating that takes into account the business climate, economic and financial prospects and company payment behaviour. Singapore's ratings of A1 in both areas signify the lowest category of risk on a scale with seven levels in increasing order.

- The Business Times, P9




German fund to pour up to 4b euros into Asia
German fund manager Union Investment Real Estate plans to invest up to four billion euros (S$8.44 billion) in Asia over five years. Union Investment opened an office in Singapore in 2006, and is keen to ramp up its investment in Asia. Japan tops the firm's list of its favourite Asian markets, which also includes South Korea, Singapore and Malaysia. German open-ended property funds, including those run by Union Investment, have been snapping up property abroad since a redemptions crisis forced them to sell many assets in their home market in 2005 and early 2006.

- The Business Times, P29




Jobless US bankers set their sights on S'pore
Job cuts in US and European banks are forcing bankers in those countries to seek jobs in a region still relatively insulated from the crisis: Asia, particularly Singapore. Recruiter Robert Half have seen an increase in the number of resumes of about 200% from North American applicants seeking employment in Asia Pacific, with particular interest in Singapore. It also pointed out that the outlook in Asia is still good and Singapore also offers good infrastructure and low income tax rates that Westerners find attractive. But some recruiters said that it won't be easy for many of them to find jobs here as they lack Asian experience.

- The Business Times, P1



Properties in Vietnam fully leased: KepLand
Keppel Land Ltd (KepLand) said its commercial properties in Vietnam are fully leased and the company sees little impact from accelerating inflation in the country. Vietnam cut its 2008 economic growth target yesterday to 7% from 9% as the year-on-year inflation rate reached 25.2% last month. Apartment prices in Vietnam's Ho Chi Minh City have declined as much as 50% since January. But some analysts say Vietnam still offers potential. Demand is driven by urbanisation, genuine buyers, and non-speculative investors, said an analyst at DMG & Partners Securities. KepLand noted that fundamentals in the Vietnam property market remain strong.

- The Business Times, P5





Quake effect on China economy likely limited
Government spending to rebuild the quake-affected region is driving up prices for some goods. But to limit the broader effect on inflation, the government has planned to offset spending on quake relief by slowing the growth rate in government spending elsewhere. Many economists conclude that the economic harm of the earthquake will, as a result, be limited.

- The Business Times, P15




At home with Frasers
Attributes contributing to Frasers Centrepoint Homes’ successes include choice locations, well-timed marketing and sales launches, attractive pricing, constant product refinement and excellent after-sales service. Some of its high-profile residential projects include:
- Soleil @ Sinaran: unique spa concept allowing residents to arrange for personal spa sessions
- St Thomas Suites: 78% of the site area is for landscaping and greenery
- Martin Place Residences: 80% of the site area is lush landscape
- ClementiWoods: recently commended with the BCA Green Mark GoldPlus Award

- The Business Times, P30 - Advertisement




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