DAILY MARKET UPDATES 13th September 2008

Home prices near replacement cost
Real Estate Developers Association of Singapore president Simon Cheong says private home prices are unlikely to drop much from current levels as selling prices are close to replacement costs, inclusive of construction costs. Developers had a good year last year, suggesting that they will be under less pressure to lower prices to chalk up sales. Mr Cheong doesn’t anticipate that the drop will be too severe if there is one. But some market watchers point out that weaker players may be more inclined to trim prices to dispose of their projects. Another factor affecting price levels is the secondary market. The median subsale prices of Citylights and The Sail @ Marina Bay eased about 2 and 14% respectively in Q2 2008 from Q1, according to DTZ. Mr Cheong said that high-end home prices have peaked but will probably achieve a new high when sentiment and the economy improves, come 2010 when the integrated resorts come into play and with Singapore being a successful wealth management centre. City Developments said that the low- and mid-end segments are still quite resilient.
- The Business Times, P16
Some developers want GFA incentives restored
With profit margins looking slimmer these days, some developers have decided to appeal to the Urban Redevelopment Authority (URA) to reinstate GFA (gross floor area) incentives for providing planter boxes and bay windows in condominiums. While sources say this is unlikely, an extension of the deadline for the approval of projects based on the old planning guidelines on planter boxes and bay windows may be given. Most developers do not see the GFA exemption as an incentive. On the rationale for the change in guidelines, URA said that its checks on some completed developments had shown that on average, only about 10% of the approved planter boxes within residential units were used for planting.
- The Business Times, P16
Standard Chartered targets wealthy overseas Koreans
Standard Chartered Private bank launched the Global Korean Private Client Program here yesterday, featuring specially-tailored products and services for Korean millionaires living outside Korea. Standard Chartered is the biggest international bank in Korea by some margin. Korea is the third-fastest expanding high net worth (HNW) market - after India and Singapore - with annual growth of 17% from 2005 to 2007. Korean global assets are US$289 billion and projected to grow to US$440 billion by 2012. A growing trend among HNW Koreans is to emigrate, predominantly to Singapore, Hong Kong and Shanghai. An estimated 68,000 HNW Koreans live in Asia-Pacific. Some 4,000 of the 20,000 Koreans living here are HNWs. 40% of HNWs are under 40. Younger entrepreneurs come from sectors like pharmaceuticals and electronics, while older wealthy Koreans are likely to come from shipping, manufacturing or trading businesses. Standard Chartered can help Koreans who want to invest back in Korea or do business there. Services like investment management, estate planning and real-estate buying will be tailored to their needs.
- The Business Times, P17
Low Keng Huat's H1 profit up 36%
Low Keng Huat (Singapore)'s net profit rose 36% year-on-year to $10.4 million for the first half ended July 31, 2008, on higher profit from associates and hotel operations. Profits from associated companies increased by 17% to $9.8 million due to higher contributions from one-north Residences (fully sold except for two shop units), Duchess Residences (fully sold except for one unit) and Regency Suites (fully sold), offset by reduced contribution from completed project Domain 21.
- The Business Times, P14
S'pore slips in corporate governance ranking
Singapore, which notched a score of 70% in the previous Asian Corporate Governance Association (ACGA)’s corporate governance rankings in Asia in 2005, not only saw its score fall to 65%, but its position in the rankings also slipped from first to second. Except for China and Taiwan, all countries scored lower in corporate governance last year. A closer examination of the corporate governance practices in Asian countries uncovered many areas that were lacking and were overlooked in previous rankings. Singapore set up the Audit Committee Guidance Committee only in January this year.
- The Business Times, P14
Frasers Centrepoint in rebranding move
Frasers Centrepoint is going for a new name and a fresh look as it moves to conquer markets abroad. Frasers Centrepoint has rebranded itself Frasers Property. In the first half of its 2008 financial year, 39% of the developer's assets were abroad. Some 15% of Frasers Centrepoint's $8.3 billion portfolio was parked in China, the biggest overseas market. Australia and New Zealand together accounted for 12% of assets, while 9% were in the UK. The remaining 2% were in various countries, including Thailand, Vietnam, Malaysia and the Philippines. In the UK and Australia/New Zealand, it has set up holding companies and built up its teams. The challenges in overseas markets are poorer liquidity from banks and poor buyer sentiment.
- The Business Times, P36
China property meltdown feared
China's property market could be headed for a 'meltdown' as home prices and sales slump, Morgan Stanley analysts said. Property demand in Chinese cities has dropped by as much as half since the government raised minimum down payment requirements and increased rates on some mortgages to cool home prices. By the end of June, 3,612 people in Shenzhen had fallen 90 days behind on their mortgage payments since 2006. Still, analysts are confident that banks will avoid big home-loan losses. Mortgages made up 10.5% of total Chinese bank lending at the end of June, and house buyers must make minimum down payments of 20- 30%, reducing the risks that banks run.
-The Straits Times, C24
The Ambra
- Freehold apartment
- Lorong H Telok Kurau
- 8 minutes to Kembangan MRT
- 3 minutes to Telok Kurau Park
- Average $850 psf
- Expected TOP: 30 June 2012
- Developer: Roxy Homes
- Marketing agent: Savills
-The Straits Times, A20 - advertisement
Signature at Lewis
- Freehold
- No.1 Lewis Road – j unction of Lewis Road and Bukit Timah Road
- Near the future Botanic Gardens MRT and Stevens MRT stations
- 32 units in a 12-storey block: 10 studio units (635 sqft), 10 two-bedroom units (980 sqft), 10 four-bedroom units (1,841 sqft), 2 penthouses with private pool and roof garden (3,068 and 3,445 sqft)
- $1,670 psf onwards
- Expected TOP: 31 December 2011
- Developer: Hiap Hoe Group
- Marketing Agents: OrangeTee, HSR
-The Straits Times, A32 - advertisement
Livia
- “With land costing easily between $250 & $350psf coupled with high construction costs, developers’ break-event cost is at least $700psf. Livia’s average price of $650psf is definitely a steal.” – Jack Chua, ERA President & Peter Ow, Knight Frank Executive Director.
- 99-years leasehold condo (from 7 Jan 2008)
- Located just 8 minutes from Pasir Ris MRT and complete with unique activity zones sprawling across 450,000 sqft of land
- Aqua Zone: Wi-fi enabled pool lounge, Aqua Gym, Spa Alcove with soothing water jets
- Action Zone: ‘Xtreme Swing’, ‘Rocky Climb’, basketball half-court
- Garden Zone: bamboo, fragrance and fern gardens
- Leisure Zone: Tennis court, gym, BBQ pavilion, children’s play area, clubhouse
Located just off Pasir Ris Drive 1
- Surrounded by prestigious schools such as Singapore’s forth upcoming university at Upper Changi Road East
- Phase 2 now launched
- 3-, 4-BR apartments and penthouses
- Average: $670 psf
- 3-BR units: $800,000 - $940,000
- 4-BR units: $990,000 - $1.05 million (1,539 sq ft)
- Expected TOP: 31 Dec 2011
- Developer: Hong Realty
- Marketing agents: ERA, Knight Frank
- The Straits Times, A36 - advertisement
Kovan Residences
- 99-years w.e.f. 31 Dec 2007
- Near Kovan MRT station. 20 minutes to the city
- One MRT stop away from the future Serangoon mega mall in the new Serangoon Hub
- Four MRT stops away from City Square Mall at Farrer Park MRT Station
- 5 minutes’ drive to the new Woodsville flyover
- Facilities: BBQ areas, dining pavilion, al fresco dining area, tennis courts, steam room, jogging track, sunken gym, many pools, spa pavilion, outdoor cabana
- Heartland Mall across the road
- 5 minutes away from Chomp Chomp food centre
- Good schools in the area – Rosyth School, Maris Stella High School, Australian International School, French International School, Korean International School, Indian International School
- Distinctive long balcony in each unit gives panoramic views of the scenery
- 2-bedroom units: 883 – 947 sq ft
- 3-bedroom units: 1,173 – 2,013 sq ft
- 4-bedroom units: 1,765 – 2,260 sq ft
- Penthouses: double-storey living rooms with private pools or Jacuzzis
- $800-950 psf
- Expected TOP: 2 Oct 2013
- Joint developers: Centurion and Lian Beng Group
- Marketing agent: DTZ
-The Straits Times, B3 – advertorial
Dakota Residences
- 99-year leasehold w.e.f 11 September 2007
- 2, 3, 4-bedroom apartments (1,023 – 1,893 sqft)
- 5 min away from CBD, Marina Bay Sands IR
- Amenities:
- Shopping malls (Parkway Parade)
- Dakota MRT Station
- Katong Park, East Coast Park
- Upcoming Singapore Sports Hub
- New Kallang Riverside
- Marina Bay developments
- Zero instalment home loan package up till TOP by DBS
- Developer: Ho Bee & NTUC Choice Homes
- Marketing agents: DTZ, CBRE
- The Straits Times, B8 - advertisement
The Lattiz
- Freehold, foreigners eligible
- 15 apartment units
- 2 & 2+1 bedrooms: 1,033 – 1,141 sqft
- 3-bedrooms: 1,249 – 1,389 sqft
- Penthouses: 2,196 – 2,303 sqft
- Along Lorong Salleh
- Minutes away from Tao Nan School, Victoria Junior College
- Developer: Cre8 Property Development
- Marketing agent: PropNex
- Marketing agents: DTZ, CBRE
- The Straits Times, B10 - advertisement
Jubilee Residence
- Freehold apartment
- Foreigners eligible
- Over 50% sold
- Special incentives available
- 353 Pasir Panjang Road
- Expected TOP: 31 Aug 2008
- Developer: Choregeo
- Marketing agent: Savills
- The Straits Times, B12 - advertisement
Reflections at Keppel Bay
- 99-years w.e.f. 15 March 2006
- Six towers on a land size of approximately 84,000 sq m
- 2, 3, 4-bedroom and penthouse units
- $1,500 - $2,300 psf
- Private waterfront playground, Marina at Keppel Bay
- Deferred payment scheme – 20% downpayment, no further payment till handover
- Developer: Keppel Homes
-The Straits Times, B14 - advertisement
D’Chateau @ Shelford
- Deferred payment scheme – 5% upon booking, 15% within 8 weeks, no further payment till TOP
- Freehold, foreigners eligible
- 2 blocks of 5-storey flats comprising 31 units including penthouses with roof gardens
- 2, 3, 3+1- apartments and penthouses
- 25 Shelford Road
- Developer: East Coast Properties
- Sole marketing agent: DTZ
-The Straits Times, C5 - advertisement
The Wharf Residence
- 999-years less 15 days from 1 July 1841
- Tong Watt Road (near Kim Yam Road and Mohamed Sultan Road)
- 4 blocks
- Absorption of stamp duty
- Attractive loan interest scheme for limited units
- Developer: CapitaLand
- Marketing agent: ERA
- https://webmail.fareast.com.sg/exchweb/bin/redir.asp?URL=http://www.wharfresidence.com.sg/
- The Straits Times – C11, also in businesstimes.com - advertisement
The Florentine
- 947-years w.e.f 5 Oct 1934
- Price from $786,000
- Penthouses available
- 68 Florence Road
- Near Kovan MRT and Heartland Mall
- Developer: Roxy Homes
- Marketing agent: HSR
- Expected TOP: 30 June 2011
- The Straits Times – C11 - advertisement
Riz Haven
- 946-years w.e.f 1938
- Foreigners eligible
- 33 apartments
- 1+1, 2+1, 3+1-bedroom apartments
- 2+1, 3+1, 4+1-bedroom penthouses with roof terrace
- Jalan Layang Besar
- Near United World College and Singapore’s forth university at Upper Changi Road East
- Interest absorption scheme
- Developer: Tras Development
- Marketing agent: HSR
- Expected TOP: 30 June 2011
- The Straits Times – D15 - advertisement
Beacon Heights
- New launch
- 3-bedrooms from $888,000
- 999-years w.e.f 2 June 1882
- Zero housing loan instalments till TOP
- Further 1% discount for the first 20 buyers
- 28 storeys
- 212 units (1+1, 2+1, 3-bedroom)
- 630,000 sq ft land area
- 1 minute to CTE and PIE
- Woodsville Interchange to be completed before TOP to ease congestion on Serangoon Rd
- 2 swimming pools, floating gym, observation deck
- Developer: St Michael’s Development
- Marketing agent: Huttons
- Expected TOP: 30 June 2011
- The Straits Times – D16 - advertisement

­ ST Index change 2,570.67 (+29.52)