DAILY MARKET UPDATES 11th September 2008

More PRs snapping up private homes
The proportion of permanent residents (PRs) in the pool of foreign buyers of private homes here has been rising, according to DTZ's analysis of caveats data from URA. PRs made up 54% of the total number of 913 private-home purchases by foreigners in Q2 this year - up from a 51% share in Q1. Non-PR foreigners have seen their share of this pool decline from 54% in Q3 2007 to 46% in Q2 this year. DTZ expects the trend to continue in the coming months. Foreigners (including PRs) bought a total 913 private homes here in Q2, up 3% from Q1. Malaysians overtook Indonesians as the top foreign buyers of private homes in Singapore in Q2. Malaysians accounted for 19% of the purchases by foreigners (including PRs), followed by a 17% share for Indonesians. China and India citizens each accounted for 11% of foreign buyers while UK buyers had a 9% share. Projects which received more foreign interest in Q2 include The Lakeshore, Vutton at Akyab Road and Nassim Park Residences. Foreigners (including PRs) made up 44% of the 55 units sold at The Lakeshore. The Indonesians favour prime districts 9 and 10. District 15 is popular with all the five major nationalities because it offers sea views, easy access to the airport and city, and is a popular residential area even with the locals. The Chinese, Malaysians and Brits also buy into the west.
- The Business Times, P32
Ease of doing business: Singapore is still No. 1
Singapore is tops for the third straight year globally in the ease of doing business, thanks to continual regulatory reforms, a survey by the World Bank and International Finance Corporation (IFC) shows. Singapore has undertaken reforms in starting a business and dealing with construction permits. It simplified the online process for business start-ups, cutting the time required by a day, and fast-tracked the process for giving out construction permits from 102 days to 38. The survey ranks 181 economies based on 10 indicators of business regulation that track the time and cost to start and operate a business, trade across borders, pay taxes and close a business.
- The Business Times, P9 – also see The Straits Times, B18 “S’pore still tops for business”
TID wins URA condo-site tender with $84m bid
URA awarded a 99-year leasehold condo site next to Tanah Merah MRT Station to top bidder TID. TID's $84 million winning bid reflects a land price of about $282 psf of potential gross floor area, within the $250-$300 psf ppr range market watchers predicted for the confirmed list site when it was launched in mid-July. TID is a joint venture between Hong Leong Group and Japan's Mitsui Fudosan. The tender drew 7 bids.
- The Business Times, P32
Abu Dhabi bank putting 1b dirhams in property unit
Abu Dhabi Islamic Bank plans an aggressive real estate expansion outside its home base into Africa, Europe and Asia by putting one billion dirhams (S$390 million) into its Burooj Properties unit. The bank also aims to float a majority of Burooj shares in 2010 as cash profit at the division, which excludes revaluation of assets. Burooj said these markets look attractive and stable for investments to be done where the fundamentals are good with strong demand. Burooj is setting up branches in Egypt, Algeria and Syria, and will examine commercial and residential property development.
- The Business Times, P30
Over 65% of Phase 1 leased out
The first phase of Marina Bay Financial Centre is 65.6% pre-leased, almost two years ahead of its completion in Q2 2010. Two big names from Australia, BHP Billiton and Macquarie Group, are among the latest tenants. BHP Billiton will lease 142,000 sq ft of MBFC's Tower 2 under the project's first phase, while Macquarie will take more than 74,000 sq ft of the same tower. Murex Southeast Asia has leased about 25,000 sq ft at Tower 2 under a six-year tenancy agreement. With the latest signings, the total 2.92 million sq ft of Grade A office space in the MBFC development is 61% pre-committed. CBRE said that the latest signings at MBFC are a good indicator that demand for quality office space remains in positive territory and that there is underlying confidence in Singapore's relative position.
- The Business Times, P3
Exec search firm sets up global HQ here
The growing interest of American and European companies in expanding their operations in Asia and hiring more senior staff is one factor prompting international search company Whitehead Mann to set up its second global headquarters in Singapore. Whitehead Mann, which is also based in London, focuses primarily on helping companies to search for directors, chief executive officers (CEOs) and other top management staff. The firm, whose clients include 90 of Europe's top 200 companies, will hire about 50 staff.
- The Straits Times, B18
Barratt posts 13% profit fall, cancels dividend
A slide in Britain's housing market led builder Barratt Developments plc to cancel its final dividend after underlying annual profit fell 13% and it warned that the market remained difficult. Latest monthly data from HBOS, Britain's biggest mortgage lender, showed house prices fell for the seventh month running in August to stand 12.7% lower than a year earlier. More than £25,000 (S$62,900) have been wiped off the value of the average British home in the past year. Barratt unveiled a new package of measures to stimulate flagging sales, including stamp duty holiday on purchases up to £500,000 and a price guarantee to protect buyers from short-term falls in prices. Under its Price Promise scheme, if a buyer sells a house at a loss within three years, Barratt will refund the difference, up to a maximum of 15%.
- The Business Times, P31
NZ house sales slump to 26-year low
The number of homes sold dropped 34% to 4,220 last month from 6,394 a year earlier. The median house price dropped 5.7%. Slowing consumer spending and a plunge in the housing market tipped New Zealand's economy into a recession in the first half of this year, prompting interest rate cuts. The underlying fundamentals for housing demand remains weak, with mortgage rates still at high levels and over-supply of houses in the market will weigh on prices, said an economist at ASB Bank Ltd in Auckland.
- The Business Times, P30
As £ plunges, S'pore firms get pounded
The free-falling British pound is hurting exporters and Singapore companies with investments and operations in the UK. The pound is down 3% against the Singapore dollar since the beginning of the month and has slumped about 12% so far this year. Firms that have not hedged against depreciation in the pound are finding that their export receivables from the UK have deteriorated in value once converted to the local currency. For UK companies heading here, there has been no indication of any concern over the slide in the currency, said the British Chamber of Commerce.
- The Business Times, P1
Wholesale licence for QNB
Qatar National Bank has received a wholesale banking licence, making it the second bank from the Middle East to be able to offer a full range of services here. National Bank of Kuwait was the first Middle Eastern bank to get a wholesale banking licence here, while Arab Bank plc operates with a lesser offshore licence. From today, QNB, which opened a representative office here in April last year, will provide a full range of services and products. Located in Millenia Tower, QNB will have about 20 staff.
- The Business Times, P10
Sybase may move regional HQ to Singapore
Enterprise software provider Sybase could add to its sizeable local operations by relocating its Asia-Pacific headquarters from Hong Kong to Singapore. Although its regional HQ is in Hong Kong, Singapore has been the bigger beneficiary of Sybase's regional investments. The firm opened a new wireless research facility in 2007 and a wireless solution centre and a software development facility here in 1998. Government agencies have been in discussions with Sybase on the possibility of relocation in the last few years and dialogue is still continuing.
- The Business Times, P29
Big pay rises for top UK execs despite tough times
A survey by Deloitte has found that executives at FTSE 350 companies are still bagging pay rises which are also outstripping inflation. The financial services sector was particularly rewarding, with directors in this sector notching up pay increases of 8.5% last year. Overall, there was a 6.2% rise in salaries for directors of the FTSE 350. Pay packages at larger UK companies are overtaking those at other FTSE 100 firms. The annual bonus at the leading companies also increased last year.
- The Business Times, P13
China Aug CPI hits 14-month low of 4.9%
China's consumer inflation fell last month to a 14-month low of 4.9%. Goldman Sachs expects consumer inflation to fall to 3-4% in the coming quarters. Gross domestic product expanded 10.1% in the second quarter from a year earlier, down from 11.9% in all of last year.
- The Business Times, P16

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