DAILY MARKET UPDATES 3rd October 2008

URA Revenue from Land Sales surges 80% to $8.3b
Land sales revenue for the year rose about 200 per cent over the $2.7 billion collected for FY06/07, while development charge revenue increased by about 100 per cent over the $527 million collected. A total of 31 sites were sold in FY07/08 compared with 16 sites the previous year. Key sites sold under the Government Land Sales programme in 2007 include two Marina View land parcels and a site at Beach Road. Operating surplus increased by 75 per cent or $11.1 million to $25.9 million. The lower investment income earned in FY07/08 resulted in a decrease in the total surplus by 74 per cent or $78.6 million to $28.3 million. Current assets fell to $1.33 billion for the period, down from $1.38 billion the previous financial year. The net surplus of $23.2 million was lower than the previous year's $85.5 million due to a drop in URA's non-operating surplus.
- The Business Times, P8
(See also, The Straits Times B35 - “Land Sales net URA record $8b in Revenue”)
Green Drive to Focus on Older Buildings
Dr Mohamad Maliki Osman, Parliamentary Secretary (National Development), told industry leaders at the event yesterday that there is increasing evidence worldwide that green buildings command higher rents and asset values, as well as increase productivity of its occupants. Financial incentives were mooted to 'jump start the process'. These included boosting the availability of funds to building owners by involving banks to provide preferential loan rates to Green Mark projects. Buildings account for about half of Singapore's total end-use electricity consumption. There are about 130 green buildings with 200 awaiting assessment.
-The Straits Times, B22
(See also, The Business Times P8 – “More Funds needed for Green Building Push”)
Orchard Mall to grant only “Green Leases”
Retailers at 313@Somerset have to sign 'green leases' committing them to achieving environmental targets, said Ms Maria Atkinson, global head of sustainability for Australia's Lend Lease, the mall's developer. They will have to comply with fit-out guidelines such as using greener materials and reducing water and energy usage. They will also have to participate in community programmes to increase awareness of the benefits of green buildings, and report energy consumption to track the building's performance. 313@Somerset will be completed late next year.
-The Straits Times, B22
Private Home Prices Ease after 4 Years
The 1.8 per cent fall in private home prices was largely driven by declines in the Core Central and Rest of Central regions. Prices of non-landed private housing in these areas slid 2 per cent and 2.1 per cent respectively. Holding up, with support from HDB upgraders, were prices in the Outside Central Region (OCR), which edged up 0.1 per cent in Q3. The HDB resale flat index advanced an estimated 4.2 per cent in Q3 from Q2, exceeding its previous peak in 1996. URA's private residential property price index rose just 0.2 per cent in Q2 2008. Taking the Q3 estimate into account, prices have increased 2.1 per cent this year.
- The Business Times, P1
(See also, The Straits Times A1 “Private Home Prices: First Fall in 4-1/2 years”.)
(See Attached; Source – The Straits Times A1 “Property Chart”)
Grade A Office Vacancy Doubles to 1.2% in Q3
According to CBRE, office rents have also plateaued with both Grade A and prime office rents remaining static at $18.80 per square foot per month (psf pm) and $16.10 psf pm respectively. Increases in vacancy rates affected most micromarkets in the third quarter of 2008 - with the exception being Orchard Road, which saw a one percentage point drop in vacancy due to higher occupancy at the newly completed Visioncrest and at StarHub Centre. CBRE estimates the confirmed new office supply over the next five years is now slightly higher at 10.64 million sq ft. By comparison the past three-year average office take-up level was just under 2.2 million sq ft.
- The Business Times, P8
GucoLand CFO Jerry Lee Quits
GUOCOLAND'S chief financial officer Jerry Lee has stepped down. GuocoLand's stock closed two cents higher at $1.85 yesterday, though in the short run his absence could weigh it down. The counter has already lost 67.3 per cent this year. Mr Lee's replacement, Mr Tan, is executive vice-president for corporate development and corporate communications at NATSTEEL from 2005 to 2008.
- The Business Times, P7
Japan Land’s Finance Chief Leaves for other Opportunities
Teh Siew Fong, Japan Land’s CFO as well as its independent director Goh Kian Hwee have stepped down. The group has not found a replacement for the CFO yet. The group had notified that its extraordinary general meeting will be held on Oct 13, where shareholders will vote on Japan Land's participation in the share swap between its associate company Japan Asia Holdings (Japan) (JAHJ) and Jasdaq-listed ATL Systems.
-The Business Times, P7
OKP clinches $6.8m JTC Contract
CIVIL engineering company OKP Holdings Limited has secured a $6.78 million contract from JTC Corporation. The deal was clinched through its subsidiary Eng Lam Contractors Co (Pte) Ltd.
-The Business Times, P7
Safety Plan First – Then Work
14,000 factories and other businesses across the island will have to submit new safety plans in order to continue operations, the Ministry of Manpower (MOM) announced yesterday. The new rules, which kick in next month, will cover factories, warehouses and logistics companies. A firm's safety plan will have to pass muster with the Government before its business licence is either renewed or granted. Shipyards, construction sites and petrochemical companies will not be subject to the new rules. They will still have to renew their licences every year or two as they are considered riskier industries with more work hazards.
- The Straits Times, B2
New International School gets Going
Sixteen more students will join the school by the end of the year, when secondary-level classes start. With about half a dozen inquiries coming in daily, principal Noel Hurley is confident that the school will start the new year with 100 to 150 places taken up. The school, started by Mumbai-based businessman Nishant Garodia, who said that retrofitting a former community centre to turn it into a school - instead of building a place from scratch - enabled construction to be completed in just three months. About $2 million was spent to build 16 air-conditioned classrooms, and facilities such as a multi- purpose hall and a library.
- The Straits Times, B12
Expert : Job Market to Stay Robust
Competition for jobs will be most intense for workers in the luxury retail, food and beverage, and hotel sectors, with the integrated resorts (IRs) coming on stream in the second half of next year. Mr Mendes, who is based in Hong Kong, anticipated the two IRs to generate up to 30,000 new jobs, with at least 30 per cent going to non-Singaporeans. He believed this would create a labour crunch in casino workers, chefs, food and beverage staff, luxury retail store management, and hotel front office staff that will intensify after next June.
- The Straits Times, B32

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