DAILY MARKET UPDATES 28th August 2008

Developers weigh odds for launches after Ghost Month
Developers are getting ready for previews and launches, especially with the Hungry Ghosts Month ending this Saturday. Preview projects this month include FEO’s Miro and Greenwood cluster. Over at Nathan Road, Tat Aik Group has invited potential buyers to Nathan Residences, a 91-unit freehold project priced at avg. $2,000 psf. Keppel Land is also expected to release in Hong Kong and Singapore about 30-40 units under the next phase of Reflections at Keppel Bay. Other projects are 360-unit Concourse Skyline apartments at Beach Road, KepLand's 56-unit freehold Madision Residence and CDL’s The Arte at Thomson. In the high-end segment, Far East Organization’s luxury development Boulevard Vue, opened its showflat for the project recently. A critical factor affecting developers' launch decisions is pricing, given the bearish sentiment. One industry observer said that instead of outright price cuts, it may be easier for developers to attract new buyers into existing projects by offering furnishing vouchers, guaranteed yields (for newly completed projects) or arranging for attractive mortgage packages.
- The Business Times, B31
Condo site near Circle Line Station up for sale
A land plot for a condo has been made available for sale in Serangoon Avenue 3, next to the Lorong Chuan MRT Station on the new Circle Line. Knight Frank think that there is a high probability that the site will be released for sale by tender because of its favourable location with good surrounding amenities. They expect site bids of between $83 million - $107 million, or $200- $255 per sq ft (psf) of potential gross floor area. Savillis Singapore said bids could come in at about $130 million, or $300 per sq ft of potential gross floor area, based on an expected selling price of $850 psf for the finished units. A new condo on the site could host 350 to 400 units of 1,000 to 1,200 sq ft each.
- The Straits Times, B20 (See attached map “28 Aug Condositecircleline.jpg”)
Sim Lian net profit up to a third to $44m
Sim Lian has posted a 33% jump in fiscal full-year net profit to $44.1 million despite rising raw materials costs. Sim Lian plans to launch three projects in fiscal 2009 at Surrey Road, Keng Lee Road and its second design, build and sell scheme project at Simei Road. Property development sales were up 20% to $250.4 million. Projects including The Premiere @ Tampines and Carabelle, as well as Clover by the Park at Bishan and The Amery at Telok Kurau are expected to contribute positively to the company's performance in fiscal 2009, said Sim Lian. Despite rising construction costs and weak sentiment in the property sector, the company expects to achieve profitable operating results in fiscal 2009.
- The Business Times, P7
Property shares lose shine
Real estate counters have taken a beating recently despite enjoying one of the biggest run-ups in prices in both the office and residential sectors last year. And prices in the local property market are generally not exposed to the kind of bust-ups seen in the US. Despite that, the FTSE ST Real Estate Index - which tracks 43 property counters - has plunged 30.4% since January, although it was up 0.2% yesterday. The market reflected the downbeat mood in property. CapitaLand, Keppel and SC Global fell while CDL rose 10cents. Some will say that it is unusual for property counters to come under such heavy selling pressure, given that private home prices still managed to inch up 0.17% in the 2Q. UBS Investment Research predicted that office prices might fall by a cumulative 34% over the next four years as demand for space weakens.
- The Straits Times, B17
Campus No. 3 for Indian School
Global Indian International School (GIIS) has more than 4,000 students at three campuses in Singapore now, with the growing Indian expatriate community here. The school's growth has not been limited to Singapore as it has expanded to the region and now has 17,000 students attending 14 schools in countries such as Japan, Malaysia and New Zealand. Next year, it will open another campus in Jakarta. With 200,000 Indian nationals in Singapore, demand is expected to grow further even as its third campus here, in Balestier, was opened officially yesterday. Two other Indian schools, NPS and DPS International, have experienced similar growth. DPS International currently has more than 1,700 students on its Kovan campus. It is planning to open another campus on the East Coast by next year. There is a huge demand for places from Indian expatriates who are looking to relocate here for work. One reason for the popularity of Singapore as a destination is its cultural familiarity, said GIIS.
- The Straits Times, B5
New Dubai registration law to curb speculation
Dubai has issued a new law to regulate the sale of real estate still under construction in an effort to curb speculation. Sales of off-plan properties in Dubai must be registered with the Land Department before they can be resold. In July, Dubai's property market showed signs of overheating as speculators betting on quick gains inflate prices of units still under construction. It will also prevent master and sub-developers from charging transfer fees on off-plan sales. Developers however can be paid administration fees of 1,000-3,000 dirhams (S$386-1,157) for each transaction after approval by the Land Department. Property prices will probably jump 35% this year and another 8.5% in 2009, when they are expected to peak as Dubai takes measures to weed out short-term speculators. Analysts said property prices would fall at least 15% from peak to trough.
- The Business Times, B30
S’pore firms top wealth-creation chart
Singapore companies have done a stellar job of creating wealth for shareholders, despite market volatility and a higher cost of capital. The first-ever ranking of the top 100 South-east Asian companies in terms of US-based consulting firm Stern Stewart & Co's 'Wealth Added Index' (WAI) finds a total of 33 Singapore companies on the list, the largest number among Asean markets. SingTel came in 1st with Keppel Corp, 7th and CapitaLand 9th. Stern Stewart has also come up with the top 100 WAI ranking for Singapore alone, as well as industry specific rankings. In the regional real estate sector, Singapore companies accounted for eight of the top 10, led by CapitaLand and CDL.
- The Business Times, P1
Waterfront Bungalows @ Sentosa Cove
- Luxury living by the sea
- Developer : TG Development
- The Straits Times, P5 (advertisement)

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