DAILY MARKET UPDATES 9th August 2008

Bumpy road, but S'pore has shock absorbers
Growth forecast for the full year has been trimmed, but only by 1% at the top-end - from 4-6 per cent to 4-5 per cent. For the first half of the year, the economic growth was actually 4.5 per cent, higher than the earlier flash estimate of 4.3 per cent. Considering the external challenges, Singapore's economic results are good, Mr Lee said. Mr Lee said that Singapore's economy has so far not taken the full blow of the US economic slowdown, thanks to the vibrancy of the Asian region. 'But Asian economies are starting to feel the impact of America's problems, and so are we,' he said. Mr Lee said that Singapore must work together as a group with Asean to keep the region on the radar screen of investors. Singapore must also maintain its reputation as an economy that is competitive, a society that is cohesive and a government that is honest and competent. He also said that many major projects: the Formula One Grand Prix, the integrated resorts and huge manufacturing investments will create many good jobs, and keep our momentum up despite the uncertainties ahead.

- The Business Times, P1 (also see The Straits Times, A3)




Challenges for property sector
The Singapore property market has weathered the storm from the US sub-prime crisis, soaring oil prices and overall inflation, pretty well. CBRE observes that the overall market has displayed some resilience. In the office market, there's still demand for office space with occupiers still looking to pre-commit office space in yet-to-be completed buildings. Transaction volumes in the private housing market have picked up in second quarter this year with encouraging sales from mid and mass-market projects. As a major developer puts it: Population growth, global and regional wealth creation, sustained government investment in infrastructure, the sharpening of Singapore's competitive edge, limited land, security and political stability, internationalisation of the property market - must be good for Singapore real estate prices in the long run. Investments and job creation, expansion plans for rail network and other infrastructure projects, Singapore's policy of welcoming foreign talent, and the positioning of Singapore as a hub for various industries are expected to provide momentum for Singapore's economy. CBRE predicts that office rentals are approaching a peak. The average monthly Grade A rental value rose to $18.80 psf in Q2 this year, an increase of 43.5% from the same period last year. For the private residential sector, CBRE said a correction of residential prices to the tune of 5-10%in the second half of this year is likely. Knight Frank says that with strong economic fundamentals, interest in real estate in Singapore by institutional investors will return once the current market turmoil blows over.

- The Business Times, P10



7 Commonwealth Dr blocks marked for Sers
HDB has identified Blocks 74 to 80 Commonwealth Drive for its latest Selective En Bloc Redevelopment Scheme (Sers). The 10-storey blocks are 44 years old and comprise 669 sold flats. The flat owners will be offered replacement flats that HDB is building at a nearby site, near Commonwealth MRT Station. HDB will build about 730 units of new two, three, four and five-room replacement flats to rehouse affected flat owners. The new flats are expected to be completed around end 2012/early 2013. Rehousing benefits for eligible Sers flat owners include compensation for their existing flats based on the prevailing market value; purchase of replacement flats at subsidised prices; and 20% discount for the purchase of the replacement flats. Eligible Sers flat owners can also choose to sell their existing flats with the rehousing benefits to buyers who are eligible to buy flats directly from HDB.


- The Business Times, P6



Steering ahead with F1
The arrival of Formula One will have obvious tourism benefits. Some people believe the inaugural Singapore Grand Prix will not only boost visitor arrivals and the wealth management sector, but also sharpen the island's competitive edge and create new businesses and industries. STB said the race is a major international leisure event with strong brand value, and will profile Singapore as a vibrant global city abuzz with high-quality entertainment and events. More than 92% of the tickets have been sold, over 100,000 spectators are expected - and 40% of them will be from overseas.


- The Business Times, P9


All eyes on IRs now
Citi analyst Dr Chua believes that the impact from the IRs will come in two phases. The first phase comes from construction spending and improved sentiment, particularly from enhanced property values. The gains in the second phase come from the surge in tourism, jobs and tax receipts. Savills says that the publicity and attention from tourists could bring in new investors and many more jobs. With Singaporeans almost fully employed, the foreign talents needed to fill these jobs add to demand for residential units and office space.

- The Business Times, P11




Why is the Singapore $ plunging?
The value of the Singapore dollar yesterday suffered its largest fall against the US dollar in two years, diving 1.2 per cent to $1.40 to the greenback. Analysts say anxieties over slowing economic growth have now overtaken inflation concerns. Two other factors mean the Singdollar is losing ground, analysts say. Firstly, falling energy and commodity prices are seen to erode inflation's threat. Secondly, local interest rates, at 1%, are prompting investors to move their money to higher-yielding currencies. Currency experts reckon the Singdollar is likely to weaken further in the coming months. But they say the Monetary Authority of Singapore will probably maintain its policy stance, allowing for Singdollar appreciation.

- The Straits Times, C21




YHS suffers $4.4m Q2 loss as sales dip 13%
Yeo Hiap Seng (YHS) has gone into the red, with a $4.4 million net loss for the second quarter ended June 30, 2008, against a $3.9 million net profit in the same period last year. The poorer bottom line was due to lower property sales, higher selling and distribution costs, and a $5.36 million impairment of goodwill relating to the group's investment in Guangzhou, China, among other factors. For the first-half ended June 2008, net profit fell 33.6% year on year to $5.1 million.
- The Business Times, P5

Jubilee Residence
- Freehold
- Foreigners eligible
- Immediate occupancy
- Over 50% sold
- 353 Pasir Panjang Road
- Expected TOP: 31 Aug 2008
- Developer: Choregeo
- Marketing agent: Savills
- The Straits Times, A28 - advertisement
Livia
- 99-years leasehold (from 7 Jan 2008)
- 3-BR apartments from $797,000 ($628 psf)
- Located just off Pasir Ris Drive 1
- 3-, 4-BR apartments and penthouses
- New stacks of 3-BR apartments released
- Expected TOP: 31 Dec 2011
- Developer: Hong Realty
- Marketing agents: ERA, Knight Frank
- The Straits Times, A30 - advertisement
Versilia on Haig
- Freehold
- Deferred payment scheme
- 3BR condo unit from $985,000
- 128 condo units
- Near central Paya Lebar Central
- Ipoh Lane
- Expected TOP: 30 June 2012
- Developer: Hoi Hup Realty
- Marketing agent: HSR, DTZ
- The Straits Times, C13 – advertisement
Charlton Villas
- Freehold strata homes
- Prices from $520psf
- Special financing packaging
- 39 strata terraces (semi-Ds sold out)
- 4BR: 2982-4026 sqft
- Charlton Lane
- Expected TOP: 31 Dec 2011
- Developer: Hoi Hup Realty
- Marketing agent: Huttons
- The Straits Times, C13 – advertisement
Woodville 28
- 110 units
- 2 to 3+1 BR apartments, 2 penthouses with private jet pool
- Zero instalment till TOP
- Expected TOP: 29 Feb 2012
- 99-years leasehold from 15 Oct 2007
- Near Potong Pasir MRT
- Developer: Frasers Centrepoint
- The Straits Times, B3 - advertisement
Shelford Suites
- 77 freehold units
- Shelford Road
- Approved deferred payment scheme
- Expected TOP: 30 June 2011
- Developer: City Developments
- Marketing agents: Savills, CBRE
- The Straits Times, B9 - advertisement

¯ ST Index change 2,807.54 (-27.17)