DAILY MARKET UPDATES 16th September 2008

Home supply data available to public
We refer to last Tuesday's report by Ms Fiona Chan, 'Size up home supply again'. The Urban Redevelopment Authority (URA) makes available a wide range of data on pipeline supply in URA Online (www.ura.gov.sg) and the subscription-based Real Estate Information System (Realis). We publish data on the number of units under construction in our quarterly press release, in addition to information on total pipeline supply. For instance, in the second quarter Real Estate Statistics released in July, it was mentioned that based on declarations made by developers, 29,736 units which were under construction would be completed between the third quarter of 2008 and 2011. Every quarter, the URA also releases the number of units expected to be completed each year based on developers' declarations. This data is sufficient to ascertain the supply, as well as changes to the supply, coming on-stream in the next few years. Therefore, it is not necessary to release data on the number of units which have had their scheduled completion pushed back or advanced.
- Choy Chan Pong, Director (Land Administration), Urban Redevelopment Authority
- The Straits Times, A25 – ST Forum
August home sales dive; prices steady
Sales of new homes fell sharply in August as developers held back launches and buyers waited out the slow Hungry Ghost month amid global turmoil. The number of new homes sold fell to 320, down 64.3% from the 897 homes sold in July this year. The number of home sales in August 2008 was also down 81.4% from the peak of 1,720 units sold in August 2007. But the number of purchases outstripped the number of units launched for the first time since April. Developers launched just 194 units in August - the lowest number over the past one year. Considering the lack of launches, the sale numbers were not that bad, said DBS Vickers. Prices also appear to be holding steady. Volumes continued to be low, especially in the high-end segment. In August, three units were transacted at above $3,500 psf - two units from Nassim Park Residences and one from The Ritz-Carlton Residences. Another five units were sold for between $3,000-$3,500 psf. Mass market homes fared better. The outside central region recorded a total transaction of 89 units, said Jones Lang LaSalle. At Livia, some 32 units were sold at a median price of $659 psf. 15 units were sold in Guoco-Land's The Quartz at a median price of $725 psf. A slight increase in sales volume is anticipated for September. Developers' cautious sentiment can be expected to continue into next year.
- The Business Times, P31
(see attached “16 Sept Launches and sales by regions”)
Ghost month pulls down home sales
Some property consultants said sales beat their expectations as they had predicted a poorer performance in the Hungry Ghost period. Some projects proved successes in the month, including boutique condominium Urban Lofts at Rangoon Road, which sold out all 46 units. Martin No. 38, Belle Vue Residences and Reflections at Keppel Bay all sold units at above $2,000 psf, while Nassim Park Residences sold eight units at a median $3,349 psf – 13% higher than its median price in July. Buyers are understood to have bought about 60 units at Concourse Skyline in Beach Road during the soft launch over the weekend, at prices ranging from $1,500 to $1,800 psf, developer Hong Fok said. Far East Organization is also understood to have started sales at Silversea in Amber Road, with about 13 units sold since Wednesday at prices averaging $1,500 psf. Jones Lang LaSalle expects sales and launches to recover this month and home prices to remain stable, as most developers are releasing in phases to avoid flooding the market.
- The Straits Times, B20
(see attached “16 Sept Top 10 best sellers”)
Restored Katong house wins Unesco award
A restored house at 733 Mountbatten Road built in the 1920s has been recognised with a Unesco award for innovation. It is the first residential property here to receive such an honour - the 2008 Unesco Asia-Pacific Heritage Award for Culture Heritage Conservation Jury Commendation for Innovation. The house was restored with an extension added by Ang Gin Wah of Gin + Design Workshop.
- The Business Times, P30
HDB revamps Home Office Scheme to keep things hassle-free
Licensing schemes for small-scale business at home and the use of telecommunications equipment have been more hassle-free, as the government moves to extend the tenure period under both regulations. For example, the Housing Development Board has changed the approval period of all new and renewal applications under the Home Office Scheme (HOS) from three years to five years.
- The Business Times, P15
CapitaLand's one-north investment costs more
CapitaLand said that its investment in one-north hub will now cost $476.8 million - up from $380 million announced in September 2007 - because of rising construction costs. CapitaLand will own and manage a retail and entertainment zone called the hub at Vista Xchange at JTC's one-north. The project is expected to be completed by mid-2012.
- The Business Times, P7
RBS to use S'pore as base for aggressive regional growth
RBS said that it has received Qualifying Full Bank status from the Monetary Authority of Singapore. This enables it to set up its own branches and ATMs in Singapore. RBS will start off by opening two more wealth management centres by next year-end and boosting its front-line staff in this area by as much as 25%. Singapore will be acting as a base for almost all of RBS' operations in Asia. It will be the global hub for RBS' group operations and control and RBS Coutts; and regional hub for global transaction services, manufacturing and corporate credit risk management. Singapore will be the main regional office for commodities joint venture RBS Sempra Commodities in the Asia-Pacific. The group's regional head of manufacturing, G11 Spot FX Traders, Global Financial Institution FX Traders, along with the respective regional heads, have been relocated to Singapore from Hong Kong.
- The Straits Times, B19
Real earnings shrink 4% in Q2: MOM
Real earnings, which are adjusted for inflation, shrank by 4% in the second quarter of 2008. This is after inflation hit 6.5% in July. According to the Ministry of Manpower, nominal earnings rose by 3.1% in Q2 2008, moderating from the growth of 11% in the previous quarter and 8.5% a year ago. According to MOM, total employment growth for Q2 was 71,400, down slightly from 73,200 in Q1. On a half-year basis, employment grew by a record 144,600, compared with 113,800 in the same period last year. The unemployment rate also rose for the second consecutive quarter to 2.3% in June, up from 2% in March.
- The Business Times, P10
Dip in July retail sales may signal spending slowdown
Retail spending fell in July, from June, in what analysts see as an early sign of a possible longer-term slowdown in consumer spending, especially when it comes to luxury items. Even though retail spending was up 11.8% from July last year, it was down 1.7% from June, according to the Retail Sales Index released by the Department of Statistics. The total value of retail sales value in July was estimated at $2.89 billion down from $2.94 billion in June.
- The Straits Times, B19

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