News Highlights Tuesday 17 June 2008

New private home sales up 55%
In May, developers sold 441 new homes, excluding executive condominiums, a sharp 55% jump from the 284 sales in April. That made May the best month so far this year. The improved sales came on the back of 474 new homes launched by developers - a 75% surge over April - though many units sold were from earlier launches. Macly Group sold 72 out of 102 units of Vutton in the Novena area at $1,057 psf to $1,416 psf. In the luxury market, the 100-unit Nassim Park Residences sold over 50 units since end-May and has hit a high of $3,800 psf. The project has been launched in Jakarta and Hong Kong. Just over 30% of the buyers are foreigners. Scotts Square in Orchard registered sales of four units at a median price of $3,818 psf last month. Savills said that the transaction and price levels in May are sustainable.

- The Straits Times, H20



'Old money' props rise in luxury home sales
Several launches in prime and city-fringe locations did well in May. Savills said that high net worth individuals (HNWIs) generally do not want to wait for prices to fall just to save 5%. With banks generally offering low interest rate returns, these HNWIs are investing in real estate instead. Selling well in May was Ascend Land's 106-unit The Verve, off Balestier Road. During May, 42 units were transacted at a median price of $985 psf. According to URA data, 84 units have been sold. Collier's International noted that the number of new launches increased 74% in May from April and said that the rebound in sales may be a sign that most genuine buyers have accepted that the current price levels are at a fair level. CBRE said that there was no downward adjustment of prices in the transactions in May. Luxury prices seemed to hold firm as projects like Boulevard Vue, Scotts Square and Nassim Park Residences maintained $3,000-psf levels. In the eastern and western parts of Singapore, prices held at $800-900 psf at projects including The Lakeshore. Jones Lang LaSalle noted that take-up rates were 87% for CCR, 84% for RCR and 146% for OCR.

- The Business Times, P1




Analysts trim full-year S'pore growth forecasts
Economists and analysts surveyed in the latest poll by the Monetary Authority of Singapore have adjusted their second-quarter growth forecasts for the economy to an average of 4.7%, up from their earlier projection of 4.4%. According to the June survey, the 21 forecasters polled have trimmed their full-year 2008 GDP growth projection to an average 5.5%. The Ministry of Trade and Industry is maintaining the official full-year economic growth forecast at 4-6%. Figures released by the Ministry of Manpower indicate that the unemployment rate rose from a seasonally adjusted 1.7% in December 2007 to 2% in March.

- The Business Times, P2




MGPA closes US$5.2b Asia, Europe fund
MGPA - formerly known as Macquarie Global Property Advisors - has announced the closing of MGPA Fund III with commitments for total equity of US$5.2 billion. The latest fund will finance the equity portion of MGPA's development of Marina View land parcels A & B and the purchase of units at the 8 Napier condo near Botanic Gardens. MGPA believes that the market has under-estimated demand and that future supply will be eaten up very quickly. MGPA Asia Investments CEO is sticking with his forecast that prime-grade Singapore office rents will appreciate 10-25% this year. MGPA Asia Fund III has raised US$3.9 billion, of which 56% or US$2.2 billion is already committed to investments in Singapore.

- The Business Times, P37



Sports Hub may now be ready only by 2012
The completion date for the new $1.87 billion Singapore Sports Hub has again been pushed back and looks likely to be ready only by 2012. Located on a 35ha site, the hub's centrepiece is a new 55,000-seater, on the site occupied by the National Stadium. It will also include a 6,000-capacity indoor Aquatic Centre, and a 3,000-capacity multi-purpose indoor arena. Barring any major hiccups, the hub should still be ready by 2013 when Singapore hosts the 27th South-east Asia Games.

- The Straits Times, P6




Phoenix Park draws 'arts village' bid
A Singapore Land Authority tender for the former Ministry of Home Affairs complex off Tanglin Road has attracted 11 bids. LHN Facilities Management made the highest bid of $368,888. One of the bids is a proposal for an 'arts village', submitted by the Spa Esprit Group - meant to pull together creative agencies and art groups. The 641,851 sq ft site - the former headquarters of the Internal Security Department and Ministry of Home Affairs - houses 24 low-rise blocks with a gross floor area of 143,160 sq ft. The guide rent is $165,000 a month or $1.15 psf per month.

- The Business Times, P37



4 Ascott projects opened this month
The Ascott Group opened four new serviced residence projects in the first two weeks of June. The properties are Somerset St Georges Terrace in Perth, Somerset Hoa Binh in Hanoi, Citadines Sukhumvit 8 in Bangkok, and Somerset West Bay in Doha.


- The Business Times, P35

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