DAILY MARKET UPDATES 14th July 2008

Prices of good class bungalows still going up, but volume falls
The volume of transactions of good class bungalows (GCBs) may have fallen but values have not. According to CBRE, there were 25 GCB transactions in H1 2008. The total value for H1 2008 is $440.65 million, almost 40% of the total value for the whole of 2007. Some of the GCBs sold in 2008 had changed hands once before in 2007. CBRE said that there is still buying interest in GCBs as it is always regarded as an attractive investment in the long term and/or for owner-occupation. Locals make up the bulk of GCB buyers. Of the estimated 2,400 GCBs, these are owned by about 1,000 wealthy individuals, suggesting that many own more than one GCB. Of the 25 GCBs sold in H1 2008, about half were sold for over $15 million. Of these, six were sold for more than $20 million. CBRE expects GCB prices to remain firm or even see a marginal upside.


- The Business Times, P11




Giant property IPO if Mapletree decides to list
An initial public offering for Mapletree Investments Pte Ltd, a fully-owned subsidiary of Temasek Holdings, could take place in the near future. The investment proposition of a potential IPO for Mapletree Investment would be that it offers a strong real estate capital management platform with an Asian focus for investors. For the year ended March 31, 2008, Mapletree posted a 3% dip in net earnings to $1.04 billion, but operating profit rose 35% to $146.9 million.

- The Business Times, P2




SWFs want minimal risk with high gains: Barclays
Sovereign wealth funds are typically looking for minimal risk for the highest return with many seeking a long-term annual return of around 5 per cent over inflation, Barclays said. The funds doing business with Barclays tended to favour more mainstream portfolio management over more direct investment. They are diversifying into a range of assets including equities, fixed income, commodities, private equity, hedge funds and property. Most of the sovereign funds want only long-term investment and are keen on investing in emerging markets.

- The Business Times, P23



Korean won in the forefront as Asian units advance
The South Korea’s won's 4.8% gain last week was the most since March 1998. The won traded at 1,002.30 against the dollar on Friday. The Singapore dollar added 0.3% last week to S$1.3588 against the US currency, while Indonesia's rupiah advanced 0.6% to 9,162.

- The Business Times, P6



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