DAILY MARKET UPDATES 13th August 2008

Solitary, low bid for Tampines site
Cautious sentiment, soaring construction costs and a not-so-hot site all combined to yield just one bid by Boon Keng Development (Midview group) for a 99-year leasehold condo site at Tampines Ave 1/Ave 10 facing Bedok Reservoir. The sole bid of about $118 psf ppr was below general market expectations which ranged from $150 to $230 psf ppr. Knight Frank said the outcome is negative for property market sentiment. It may be even worse for sentiment if the government actually awards the site as that could affect land valuations for other residential sites. Savillis noted that the Tampines site does not have the good attributes in terms of transportation links. Neither is it near major amenities. The $118 psf ppr bid for the Tampines plot, plus construction costs of about $320-350 psf of gross floor area, reflects a breakeven cost of about $500-550 psf for a new condo project with about 650 units.

-The Business Times, P4 (see attached map - 13Aug_Tampinessite.jpg)

A view to thrill
Besides a combination of an affordable price, the perfect location and other sought-after attributes, having a great view is an important factor. In the current softer property market, a captivating outlook might give a home that vital edge to ensure it sells. Buyers are willing to fork out a premium of anything up to 10% for a home with a great view. Analysts say flat prices increase up to 1.5% for each floor in high-rise properties - so a 15th- floor unit might be 15% more expensive than a comparable fifth-storey unit. Ocean outlook, the Central Business District skyline and expansive natural vistas are popular choices. The favourites are those from properties on the East Coast, and city homes that provide a bird's-eye view of prime districts 9, 10 or 11.

-The Straits Times, B24


SC Global offers NY-warehouse living at Martin Rd
SC Global is launching New York-style warehouse living in Martin Road later this year, designed by architect Kerry Hill. Called Martin 38, the freehold development will have 15 storeys which comprises 91 units, including four penthouses with pools. Unit type ranges from 1+1 bedroom and 2-bedroom apartments ranging from 969-1,130 sqft. There will be a limited number of larger 2+1 and 3-bedroom apartments, ranging from 1,335-1,485 sqft.SC Global is aiming to sell the units at an average of $2,000 per sq ft (psf). Prices of projects in the same area are around $1,200 to $1,850 psf, according to Knight Frank. Newer projects like 8 Rodyk cost more - a 721 sq ft apartment sold at $1,800 psf last month. SC Global bought the site in 1999 but said it deferred development until the area was rejuvenated and the concept of warehouse lofts became viable.

-The Straits Times, B23


New SC Global building may have car showroom
SC Global has been marketing the ground floor of its soon-to-be-completed Newton 200 office building as being suitable for showcasing an exclusive make of automobiles. SC Global said while the company is making the necessary provisions to cater for a potential car showroom, there is also extremely strong interest from other types of retail tenants attracted by the prominent space and location. Newton 200 is a 9-storey office building located at 200 Newton Road, beside the junction with Thomson Road. TOP expected in Q4 2008. There will only be one 2,200 sq ft unit on the ground floor, while each of the seven office floors will be tenanted out on a floor by floor basis only. The rates are around $12 - $13 psf. Newton 200 is SC Global's first commercial development.

-The Business Times, P29


China's inflation eases to 6.3% in July
China's politically volatile inflation eased in July as sharp rises in food costs slowed. Consumer prices rose 6.3% which was driven by a 14.4% rise in food costs, though that rate was down from 17.3% in June. The government issued an economic plan last month that switched the government's focus from fighting inflation to the dual mission of ensuring fast, stable growth while also cooling price rises. The economy grew by 10.1% in the three months ended June 30. Economists expect Beijing to try to help individual industries with tax rebates or other targeted measures, rather than an across-the-board easing of credit controls and investment curbs that have been steadily ratcheted up over the past two years.

– The Business Times, P17

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