DAILY MARKET UPDATES 30th August 2008

Dip in property development fees
Property development fees were lowered for residential apts and condo units for the first time in 5 years. Rates for non-landed residential homes falling across the board by an average of 6% islandwide. Property consultants do not expect the new lower charges to revive the quiet collective-sale market as construction costs will still be higher. CBRE expects development charges to fall again in upcoming revisions. Depending on location, the falls in fees for non-landed residential land ranged from 3.85% to 10.77%. Areas where rates dropped most included prime locations such as Ardmore Park and Sentosa, city fringe districts like Balestier, Keng Lee and Kallang, and suburban regions such as Bayshore and Bishan. Apart from non-landed residential land, development charges barely budged in other sectors, reflecting the lack of activity and flat prices in the broader property market. For industrial land, charges rose only in the Ubi and Kaki Bukit area. They went up 11.1%, possibly due to the recent sale of an industrial site in Ubi Avenue 4/Ubi Road 2 in April, suggested CBRE.
- The Straits Times, C25 (See attached “30 Aug Development Dip.jpg”, Also see The Business Times, P2 – “Rates tweaked slightly in dull market”)
Music and F&B close to home
Authorities are coming up with a plan to help businesses create more vibrant residential areas around the island. Businesses in the food and beverage industry now encountered lots of red tape if they want to give patrons something a little different - for example, a restaurant cannot have live music unless it applies to be a nightclub, etc. If URA decides to tweak current planning guidelines, it means less form-filling and bureaucracy for businesses and increased vibrancy in residential areas. It could create more magnets around the island like Thomson Village, Jalan Legundi in Sembawang, and Holland Village, and potentially more nuisance as well as convenience for residents. The URA is canvassing public feedback through an online survey which will be on website, www.ura.gov.sg. It wants to focus on businesses in private shophouses near residential areas.
- The Straits Times, B1
Inflation to ease in 2nd half of year
Finance Minister said barring oil and commodity price rises, inflation should ease further in the 2H of this year. Inflation came in at 6.5% last month, above expectations of 6.1%, but below 7.5% in April, May and June. He attributed last month's stronger-than-expected numbers to technical factors such as the service and conservancy charges rebate. He added that if owner-occupied housing were taken out of the headline inflation numbers, last month's inflation rate would have come in at 5.4%, down from an overall 6.5% for the 1H 2008. With exports suffering from the appreciation of the Singdollar, reducing their global competitiveness, one should look at it from a medium-term perspective rather than the short term.
- The Straits Times, C27
Full-year earnings down by 10.6%
Bottom lines are shrinking in corporate Singapore - notably in the property and tech sectors. As of yesterday, 70 firms had reported results for the full year ended June 30, with combined net earnings of $2.02 billion, down 10.6% from last year. Property developers were hit hard, as the local housing market showed signs of cooling in recent months. Wing Tai's net profit for the fourth quarter fell by more than half as it sold fewer homes and saw lower fair value gains from investment properties. Its full-year earnings dropped 39.9% to $229.36 million, and some analysts are pessimistic about its prospects. Another property player which saw a sharp tumble in earnings was GuocoLand is another property player whose net profit retreated 42.6%. However, GuocoLand is hopeful that the upcoming integrated resorts will boost overall economic growth and, in turn, its own fortunes. The company added that the medium-term demand for residential property should remain stable.
-The Straits Times, C29 (Also see The Business Times, P2 – “ Firms turn in dismal Q4 Resutls”)
India’s Q1 growth slows to 3 1/2-yr low of 7.9%
India's economy grew 7.9% in the June quarter, its slowest annual rate in 3½ years after losing momentum as services slowed markedly, but high inflation meant the central bank was unlikely to relax its monetary stance soon. India, whose economy is less export-oriented than many of its neighbours, is keen to see expansion of 8-10 per cent to reduce poverty and create jobs. China saw growth slowing in the first half but still in double digits, while Singapore and Hong Kong, Asia's most open economies, reported quarterly contractions in April-June. India’s Finance Minister said India was seeing a high degree of savings and investment which made him confident it would achieve its growth target.
- The Business Times, P11
Reflections at Keppel Bay
- New central tower released
- Nearby attractions of Resorts World at Sentosa and Vivocity
- Deferred payment scheme available
- Expected TOP: 30 June 2016
- Developer: Keppel Homes
- The Straits Times, B12 – advertisement
- TVC on 29th August, Friday
Shelford Suites
- 77 freehold units
- Shelford Road
- Approved deferred payment scheme
- Expected TOP: 30 June 2011
- Developer: City Developments
- Marketing agents: Savills, CBRE
- The Straits Times, A14 - advertisement
The Tresor
- Along Duchess Road
- 2 min walk from upcoming MRT Station
- Ready for Occupation
- Developer: Keppel Homes
- Marketing agents: CBRE
- The Straits Times, A22 - advertisement
Palm Galleria
- 40 units freehold
- Telok Kurau
- 3 bedroom units from $758,000 ($758psf)
- Foreigners Eligible
- 5% Down Payment
- Interest Rate Absorption Scheme Available
- Within 1 Km to Tao Nan School
- Expected TOP : 31 Oct 2012
- Developer: World Class Land
- Marketing agents: L2 Group
- The Straits Times, A30 - advertisement
Livia
- 99-years leasehold (from 7 Jan 2008)
- 3-BR apartments from $797,000 ($628 psf)
- Located just off Pasir Ris Drive 1
- 3-, 4-BR apartments and penthouses
- New stacks of 3-BR apartments released
- Expected TOP: 31 Dec 2011
- Developer: Hong Realty
- Marketing agents: ERA, Knight Frank
- The Straits Times, B3 – advertisement

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