News Highlights Tuesday 1 July 2008

Central, prime condo take-up rates outpace other areas
A study by Jones Lang LaSalle has reflected the higher primary market take-up rates for properties in the prime and central districts. This suggests the presence of a strong latent market where potential buyers are waiting to buy properties when the price is right. The prime and central districts achieved relatively higher take-up rates of 87% and 250% respectively during H1 2008 compared with take-up rates of 67% for east coast and 66% for mass-market during the same period. The average resale price for prime districts in H1 2008 was 12% higher than in H1 2007. In the central districts, the H1 2008 average resale price represented an improvement of 9% year-on-year. In the east coast, the H1 2008 average resale price raced 20% ahead against a year ago while mass-market locations topped the chart with a 25% year-on-year price gain. JLL's study also showed that there was an increase in HDB upgraders' share of total non-landed private homes bought during the first five months of this year in all locations.
- The Business Times, P4



Bank lending grows at record pace in May
Bank lending accelerated in May to its fastest pace on record, led by continuing strong growth in loans to the property sector and a pick-up in lending to financial institutions, according to the Monetary Authority of Singapore (MAS). Total loans reached $256.9 billion at the end of May, up 26.1% from a year earlier. Although bank lending to the property sector continued to rise rapidly in May, the momentum appears to be slowing. Total property-related loans, comprising consumer home loans and business loans, reached $120.6 billion - up 26.2% from a year earlier, but slower than the growth in April and March. Over the month, property-related loans rose just 0.9% in May, down from 1.5% in April and 2.4%in March.

- The Business Times, P2




Govt puts up Bugis plot for sale in quiet market
The prime 2.7ha site in front of Parkview Square was put up for sale yesterday with a price expected in excess of $1 billion. It could house a 40-storey office building, about 500 hotel rooms, as well as shops and homes. There will also be direct basement level connections to the new Bugis MRT station that is being built to accommodate the Downtown Line. At least 40% of the total gross floor area of the plot must be for office use, while hotel and hotel-related uses should occupy at least 15%. Consultants expect the 99-year leasehold white site to fetch $1 billion to $1.4 billion, or between $600 and $813 psf of potential gross floor area. The Ophir-Rochor corridor is expected to become a busy mixed-use cluster, said the URA.

- The Straits Times, H18 (also see The Business Times, P32)




1,600 premium flats in Punggol, Sengkang for sale
The Housing Board launched 1,587 premium homes in Punggol and Sengkang for sale yesterday. Its new projects - Fernvale Residence in Sengkang and Punggol Breeze - brings the total number of new homes launched under the BTO programme to 4,524 for the first half of the year. Punggol Breeze comprises 778 four-room units priced from $223,000 and 186 five-room flats, which will go from $315,000. It is bounded by Punggol Drive and Edgefield Plains, and is served by Oasis LRT station, two stops from Punggol MRT station, where the future town centre will be built. At Fernvale Residence, 55 three-room units, 444 four-room flats and 124 five-room homes will be built, with prices ranging from $133,000 to $365,000. It is at the junction of Sengkang West and Fernvale Road, near Fernvale LRT station and Fernvale Point. 111 applications were received for both new projects.

- The Straits Times, H2 (also see The Business Times, P31)




Singapore's real estate transparency ranking dips
Singapore and Hong Kong now rank side by side in 11th position on Jones Lang LaSalle's (JLL) Global Real Estate Transparency Index 2008, down from joint ninth position in 2006. JLL said the reason is an enhancement of the survey questions. JLL said that Singapore remains one of the most transparent markets in Asia. Canada ranks as the world's most transparent commercial real estate market. China (Tier-1 cities) showed the greatest improvement, moving up to 49th position. The index provides a framework for comparing the level of real estate transparency in 82 markets around the world.

- The Business Times, P31





Potential lies in building townships
Keppel Land currently has about 1,300 hectares of township developments across China, Vietnam, Indonesia and Malaysia. These developments are slated to yield 54,500 residential units on completion, and have been launched or planned for launch. Phase 1 of a township development in Shenyang, China could be in line for release in 2009. Keppel Land observed that residential prices in Shenyang have increased by an average of 10-15% per annum over the last several years and this is likely to continue. Keppel Land's property launches in Vietnam will proceed as planned. Keppel Land believes fundamentals remain strong in growing economies such as Vietnam and China, and demand for housing will continue to be boosted.

- The Business Times, P12




Tuan Sing buys Katong Mall for $219m
Property group Tuan Sing Holdings bought Katong Mall for $219 million yesterday. Tuan Sing's price values the land for the 99-year leasehold mall at about $865 psf, including a lease top-up of $24.5 million. Knight Frank said the deal was fairly priced given market conditions.


-The Business Times, P10




UK mortgage loans fall to 9-year low in May
UK mortgage approvals fell to the lowest in at least nine years in May, a sign that the housing slump is deepening. Banks granted 42,000 loans for house purchase, compared with 58,000 in April, the Bank of England said. BNP Paribas SA suggests the pace of house price declines will continue or even accelerate. In April, the Bank of England lowered the benchmark interest rate to 5%. But the cost of a home loan fixed for two years with a 25% deposit rose to 6.27% in May. Faster inflation may make the central bank reluctant to lower rates further.

- The Business Times, P31


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