News Highlights Wednesday 9 July 2008

Hamilton Scotts offers a garage in the sky
Located at 37 Scotts Road, the 30-storey Hamilton Scotts by developer Hayden Properties is the first in Asia to feature car parking within the apartment units. The project is now open for preview by appointment only. It is understood the units will be priced at about $3,800 psf. The condominium consists of 56 units, including 52 three-bedroom units of 2,700 sq ft and two 3,200 sq ft junior penthouse units. Each of these has parking space for two cars. The remaining two units are 7,100 sq ft triplex penthouses with interior customised to buyer specifications and come with a rooftop garden and swimming pool. They can accommodate four cars each. Hamilton Scotts is slated for completion by 2011. Separately, Signature at Lewis will be officially launched this Saturday by Hiap Hoe Group with a starting selling price of $1,670 psf. Located at 1 Lewis Road, the 12-storey development comprises 10 studio units (635 sq ft each), 10 two-bedroom units (980 sq ft), 10 four-bedroom units (1,841 sq ft) and two penthouses, with private pool and roof deck, occupying over 3,000 sq ft each. 3 units have been booked for an undisclosed price.

- The Business Times, P12



Posh condo on sale amid weak market
There are several posh projects in the pipeline, but developers have been holding back launches. Prices in the luxury segment are down about 10% with falls of a further 5 to 10% expected by the end of the year, said Savills. The only other major luxury development released for sale this year was the 100-unit Nassim Park Residences. More than half the units have been sold since May, with prices averaging $3,000 psf. Hayden which is the developer for Hamilton Scotts said that they are previewing the project and not launching it because it is not the right climate to launch. Hayden has temporarily halted sales at its Ritz-Carlton Residences until the mood improves.

- The Straits Times, H20



HSBC's new home loan package inverts model
HSBC's new Sibor- pegged home loan package with loyalty discount gives a reduction in the interest rate margin charged in the first three years - a first in the market. The interest rate spread reduces by 10 basis points at the end of every anniversary year, up to the third year of the loan. Under the new loyalty package, the customer pays the 3-month Sibor rate plus 0.75% in the first year; in the second year, he pays 3-month Sibor plus 0.65%; and from the third year onwards, the rate is 3-month Sibor plus 0.55%. For a customer who pledges to stick with the bank for three years, DBS's interbank-pegged home loan charges a flat spread of 0.8% for each of the three years and then it's 1.25% thereafter. United Overseas Bank charges a flat spread of 0.8% to two of its interbank-pegged home loan packages. Standard Chartered Bank's Sibor-pegged mortgage also charges a flat spread of 1%.

- The Business Times, P2




Developers offer agents fatter cuts to push projects
Developers are paying property agents bigger commissions to push their new residential project launches. This is because the environment for selling homes is more challenging now. Developers of smaller projects are understood to be paying higher commissions - often up to 2% - compared with around 1% or less a year ago. Some developers are offering a bonus payout of an additional 0.5% commission if the project sells out within a certain time frame and at a price exceeding the developer's target.


- The Business Times, P1



China home prices seen dropping more
Property prices in China will fall further because demand is weak and the government probably won't relax restrictions on home loans, according to Citic Ka Wah Bank chief economist. China's government is seeking to rein in soaring property prices to slow inflation. It raised interest rates on mortgages for second homes and increased the minimum downpayment to 40% of the sale price last September. The central bank also told commercial banks to further tighten mortgage lending last December. Under new rules, loan applications for the purchase of a second apartment are counted by household instead of by individual. Housing sales in China fell 0.4% to 136.6 million sq m in the first four months of 2008 from a year earlier. Home prices in 70 major cities rose 9.2% in May, the smallest gain in 8 months. First-tier cities will face more downward pressure on prices than smaller cities because of oversupply.

- The Business Times, P15




UK seen heading towards recession
The British Chambers of Commerce (BCC) said the business sector was on the verge of a recession and unemployment could rise. The Bank of England is widely expected to announce interest rates on hold at 5%, given that inflation is running at its strongest rate. Savills reported first-half sales of luxury homes in the London market nearly halved. The government said annual house price growth slowed to 3.7% in May from 4.9% in April.


- The Business Times, P18

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