DAILY MARKET UPDATES 12th September 2008

High-end home market going off the boil
Most developers are still holding off launching luxury condominiums, but a few projects are slowly being launched. Frasers Centrepoint has launched and sold about 30 units at its 302-unit Martin Place Residences, with apartments going for about $1,800 psf on average. SC Global Developments said last week it had released and sold 30 apartments in its Martin No 38, which has 91 units in total. The average price fetched was $2,130 psf, with sales coming at $1,881-$2,494 psf. Developers are pushing out luxury condo projects cautiously, with most releasing them in small phases. The en-bloc purchasers of Lincoln Lodge said they will be launching the new development on the site - Lincoln Suites - by early next year. Prices will be similar to or even lower than comparable projects nearby. Units in the nearby development, Park Infinia at Wee Nam, are going for $1,300-$1,600psf. Lincoln Lodge was bought for $243 million ($1,449 psf ppr) including an estimated development charge of $413,000.
- The Business Times, P9
Brokers’ take – Property Sector – DBS Group Research
New leases have been signed with BHP Billiton, Macquarie Group and Murex at the Marina Bay Financial Centre 1, bringing pre-commitments for Phase 1 to 65.6%. The new take-up indicates that the medium-term demand for prime grade A office space remains robust in view of Singapore's positioning as a leading financial services hub in this region. But the current slower economic climate and anticipated increase of new supply in the pipeline from 2009-2012 are likely to dampen occupancy and rental rates. According to URA statistics, 15.4 million sq ft of new office space, including both under construction and planned, is expected to come onstream during this period. DBS projects islandwide occupancy to dip to about 88% by 2010 (from 92.2% in Q2 2008), and rental rates to fall by 25% over the same period.
- The Business Times, P6
International school opens in the east
Another international school is opening in the east. Called the One World International School, it opened last week with places for 450 pupils aged 3 to 11. Secondary-level students join the school next year. Its campus - at 696, Upper Changi Road East - used to be the premises of the former Siglap-Changi Community Centre. One World International School has become the 44th foreign-system school to open here. The school will offer the Cambridge International Primary Programme, the model used by many international schools. The school has six teachers and four support staff. About $2 million has been spent retrofitting the campus. The school has 16 air-conditioned classrooms, and its library has a shaded outdoor reading area. School fees are $20,328 a year at the primary-school level, and $17,652 a year for nursery or kindergarten level.
- The Straits Times, B17 – see attached “One World International Sch – map”
Real estate woes spread as sales plummet
Although statistics showed single-digit growth from July 2007 to July 2008 in the average price of commercial and residential real estate, real estate brokers say prices are down from peaks reached earlier this year, while the number of transactions has plunged. This downturn comes as the growth rate of Chinese exports has slowed and stock markets have plummeted. In some southeastern parts of the country, prices have dropped by 10-40%. Cities deep in China's interior are least affected. The volume of housing transactions in Chongqing had slowed by 20-30% this year. But prices have not yet fallen from a stable level of US$730 psm. Export-dependent coastal cities in mainland China have had the steepest downturns in their real estate markets.
- The Business Times, P12
CapitaLand rolls out first phase of mega UAE project
CapitaLand and Abu Dhabi's Mubadala Development Company yesterday launched the first phase of a massive project in the United Arab Emirates (UAE) capital. The phase, called Rihan Heights, is a residential development comprising 14 villas and 854 condominium units on a site of about 38,000 sq m. Rihan Heights is part of an integrated development called Arzanah that will comprise about 9,000 homes, leisure and sports facilities and retail space on a 1.4 million sq m site. The 854 condo units at Rihan Heights include one to three-bedroom apartments and penthouses.
- The Business Times, P9
S Korea holds base interest rate steady at 5.25%
The Bank of Korea held the base rate steady at 5.25%, after it raised it by a quarter of a percentage point last month to a 71/2 year high in the first policy tightening in a year. The central bank said that inflation would stay high for a considerable period, due to a weak won currency, slowing economic growth and volatile financial markets. Annual inflation eased to 5.6% last month.
- The Business Times, P10
Woodlands jams: New rules to kick in next week
Following complaints from Woodlands Town Centre residents and merchants, who said traffic headed for the checkpoint has snarled roads and driven shoppers away from the area, new restrictions will be set to ease congestion woes. The restrictions will kick in at 4pm on September 15, Monday. During peak hours, only public and school buses will be allowed to turn right from Woodlands Centre Road towards the Woodlands Checkpoint. This means that from Mondays to Fridays, between 4pm and 10pm, and on Saturdays, Sundays and public holidays between 10am and 10pm, cars are forbidden from using the road to get to the checkpoint. The road is one of several routes to the checkpoint. Lorries and motorcycles are not allowed to turn right from the road. The diversions are part of a three-month trial to see if the situation improves.
- The Straits Times, B6 – See attached “12 Sept – Woodlands Traffic Diversion Trial”
Sino Land's Tan-Wijaya to join Savills as senior director
After just over a year with Sino Land as general manager for the Fullerton waterfront properties, she is joining property consultant Savills Singapore on Oct1 as senior director, retail and lifestyle. She will also be part of the Savills Singapore management team and be engaged in general business development, as well as assisting in the luxury residential and prestige homes divisions.
- The Straits Times, B29

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