DAILY MARKET UPDATES 1st September 2008

Fire Sale? Don’t hold your breath
Market watchers had warned that the negative sentiment in the property market might prompt investors to offload their uncompleted units and drive home prices down. Savills found that almost everyone who sold a private apartment or condo unit in the sub-sale market in the first 7 months of this year pocketed robust gains. 97% of sub-sale sellers this year have cashed out at a profit. On average, they reaped $417,563 per unit, or a 36.5% gain. This implies that property investors are sitting on profits and are likely to be in no hurry to exit their investments. Industry players caution that 2010 may be a different scenario as the projects that will be completed then were mostly launched during the peak of the market. Buyers bought high and are likely to register losses if they want out of their investments. If prices stay soft and the economy does not make a recovery, buyers might feel an urgency to sell their properties and the market might be flooded with these expensive apartments come 2010. A glimmer of hope for the property market lies in the healthy profits that investors have made so far this year. Consultants expect the profit money to return to the market, which may help to prop up prices.
- The Sunday Times, P25 – 31st August 2008
JTC to give more specific property info
JTC Corporation will offer more supply information starting in the first half of next year. This will give developers a better idea of which businesses will find a certain space appropriate. JTC plans to give more details on the types of industrial properties and industry-specific demand. This will help to better match available supply with pipeline demand. JTC holds regular discussion sessions with developers to update them on coming launches and seek feedback about JTC initiatives.
- The Straits Times, B19
Singapore's chemical romance continues
The Economic Development Board (EDB) is expecting more specialty chemical players in the form of national owned companies (NOCs) and others from emerging markets such as China, India and the Middle East to set up shop here, as it steps up efforts to attract more downstream players. The deals in the pipeline will include a mix of new players and companies that have a small presence in Singapore. Japan's Mitsui Chemicals which has pumped in around US$700 million is mulling the set-up of another phenol plant here, while Asahi Kasei Corporation said it has considered building a synthetic rubber facility. Tamil Nadu Petroproducts' petrochemical plant is worth US$110 million.
- The Business Times, P3
Businesses suffer big hit in Q2: poll
Business sales and profits here took a big hit in the second quarter amid a sharp economic slowdown, and GDP growth in the third quarter of this year could slow further to 1.4%, according to the latest BT-UniSIM quarterly survey of business activity. The survey of 138 local and foreign companies found that all the indicators for Q2 were down from a year ago. The business prospects net balance - the difference between the proportion of companies that expect better times and those expecting worse - plunged 81 points to negative 25% from Q2 last year. The profits net balance indicator dived 32 points year-on-year to minus 5%. The BT-UniSIM survey found that foreign companies fared worse than their local counterparts. In terms of business prospects in the next six months, local firms were less pessimistic than foreign companies. The survey also showed that smaller companies fared better than large ones and business activities were stronger in Singapore than in other countries.
- The Business Times, P1
UK downturn deeper than feared: finance minister
Britain's economic downturn is likely to be deeper and last longer than originally feared and it might turn out to be the worst for 60 years, its finance minister said. His comments came just days before a planned package of measures designed to buffer the economy and help the government regain the political initiative. Official figures showed the economy failed to grow in the second quarter for the first time since the early 1990s. House prices have crumbled by more than 10% over the past year and the number of mortgages approved for home purchase has hit a record low, suggesting no hope of recovery anytime soon.
- The Business Times, P23
DBS and China Unionpay
- DBS gives you access to China Unionpay in Singapore, China and in countries that DBS operates in
- Promotion: DBS is giving a RISIS souvenir when you charge minimum S$200 to your China Unionpay Card at Takashimaya Department Store.
- The Straits Times, A7 - advertisement

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