DAILY MARKET UPDATES 1st November 2008

Dining room with a difference – Orchard Scotts
AS if the designer fittings in all of its 206 apartments weren't enough for its residents, Orchard:Scotts also places a dining room at its guests' disposal that can be booked for private events. You get the idea that this is quite a different breed when you step inside and clap eyes on the cordon bleu coffee machine built into the sleek wooden cabinets and the 52-inch LCD TV embedded in a wall of granite. Says Chng Kiong Huat, director for development and projects at Far East Organization, which owns the property: 'Rather than simply putting in a list of 'required facilities' by rote, we took pains to look at the composition of targeted buyers, and to create amenities that would suit them and help them live life to the fullest.' The inclusion of the 16-seater dining room, he adds, is aimed at giving residents the opportunity of holding 'that wonderful private party in their own home'. In addition to the full range of kitchen equipment, cutlery and crockery, the room is fitted with an ice-making machine as well as an in-house cellar. With bookings nearly every day since the condominium was launched a year ago, the facility seems to be spot-on when it comes to what residents want.
- The Business Times, L2
Govt suspends sale of state land
Government Land Sales (GLS) from the Confirmed List of state sites have been suspended for the first half of next year. The remaining sites on the Confirmed List will be transferred to the Reserve List. And a ban on converting office space in the central area to other uses, such as housing, will be lifted. The Ministry of National Development (MND) said Singapore's fundamentals remain sound but the global downturn has affected the outlook for the island's economy and property market. Steps have been taken 'to allow the market to better respond to the current dynamic economic conditions', MND said. The news was met with jubilation in property circles. Simon Cheong, president of the Real Estate Developers Association of Singapore (Redas), said the move is 'timely' and shows the government is 'sensitive to the health of the market'. Of the seven sites on the Confirmed List, three have been launched for tender but the tenders have yet to close. Only the tender for an Executive Condominium site will proceed. The lifting of the ban on the conversion of offices in the central area to other uses could add more supply. But Cushman & Wakefield thinks this will allow developers to adapt to market changes.
-The Business Times, P36
(also see The Straits Times, C20, “Govt stops outright land sales”)
Grabbing opportunities in uncertain times
Demonstrating that he hasn't lost his penchant for spotting a good bargain during a major economic upheaval, group managing director Francis Yeoh Sock Ping said YTL had shelled out $285 million for 26 per cent of Macquarie Prime Reit (MP Reit) and a half-share of the holding company that manages it. Its MP Reit purchase is less than the $435 million the company paid towards the end of last year for the 30-year-old Westwood Apartments on Orchard Boulevard - the $2,525 psf ppr mark established in an uncertain property market raising eyebrows. YTL is expected to step up its overseas forays and add to existing assets in Australia, the UK - and now Singapore.
-The Business Times, P14
First city reservoir opens
A dream 20 years in the making unfolds today with the opening of the Marina Barrage to the public. This dam has created Marina Reservoir, the 15th reservoir here and the first one in the heart of the city. This reservoir and two other new ones will raise the portion of the country's land area used for water catchment from half to two-thirds. Prime Minister Lee Hsien Loong, who officially opened the facility at sundown yesterday, hailed it as an engineering feat. He also noted that, increasing the nation's water supply aside, the barrage will also control floods and become a key venue for activities by and on the water. The barrage and park, together with the Marina Sands integrated resort and the new Marina downtown area, 'will add to the vibrancy and attractiveness of the city', said Mr Lee.
-The Straits Times, A3
Kolam Ayer waterfront project refreshes community spirit
A year ago, the Kallang River beside Kolam Ayer was a big, dirty storm drain. Today, lush flora line the waterway, a spice garden sends its fragrance through the air, and a graceful floating platform on the river bank draws nearby residents. They are giving two thumbs up to the $2.5 million makeover of the 200m stretch. Since its opening in March, it has been a centre of activity for residents. Community participation has gone up by about 30 per cent, compared to before the revamp. The waterfront was given a overhaul last year under the Active, Beautiful, Clean Waterways programme spearheaded by national water agency PUB.
- The Straits Times, D10
3-day surge fizzles out as caution reigns
After Thursday's history-making surge on the Singapore bourse, a letdown yesterday was almost inevitable. Local investors decided to take profit at the end of the week rather than hold open positions in these highly uncertain times. The local stock market ended its three-day winning streak after a morning rally fizzled out. After powering ahead by 7.8 per cent on Thursday, the market struggled to stay in positive territory as investors ran out of reasons to hold on to gains. The STI eventually closed 7.71 points, or 0.43 per cent, lower at 1,794.2, dragged down mainly by profit-taking on the banks. For the week, the benchmark posted gains of 12.12 per cent.
- The Straits Times, C27
CapitaLand's Q3 profit falls 25.6% on shrinking home sales
CapitaLand’s net profit for its third quarter ended Sept 30, 2008 fell 25.6 per cent to $419.4 million, from $563.9 million a year ago as home sales fell. Revenue in Q3 2008 fell to $597.2 million, down 33.3 per cent from $895.8 million in Q3 2007. Turnover was hit by lower sales revenue from development projects in core markets. But the decline was mitigated by stronger rentals from investment properties and higher fee-based income from real estate investment trusts (Reits) and funds under management. So far this year, CapitaLand's Singapore residential unit has contributed the most to revenue. But buying sentiment is expected to remain cautious in Q4 2008, the developer said. CapitaLand may progressively release units at The Wharf Residence and Latitude condominiums for sale in Q4 2008. Its development at the former Farrer Court site is also expected to be launch-ready in 2009.
-The Business Times, P6
(also see The Straits Times, C21, “CapitaLand poised to seize opportunities in downturn”)
SM says misled buyers will get fair deal
Senior Minister Goh Chok Tong had words of reassurance for investors in Singapore who felt misled into buying structured financial products. The Monetary Authority of Singapore (MAS) will ensure that the financial institutions which sold products such as DBS High Notes and Lehman Minibonds provide recourse to aggrieved investors, he said. About 2,400 investors - about a quarter of the estimated 10,000 people who bought the now worthless products - have lodged formal complaints with the financial institutions (FIs) which made the sales. MAS requires the FIs to acknowledge receipt of a complaint within two working days, arrange for an interview within two weeks and provide a resolution within four weeks.
-The Straits Times, A14
Black October
October's massive sell-offs saw $123.5 billion slashed off Singapore's stock market capitalisation as global jitters persisted and recession fears came true. The gloom will hover for some time as market observers say the worst is yet to come. The combined value of the 781 companies on the SGX stood at a three-year low of $391.5 billion yesterday evening, 24 per cent lower than the $514.9 billion recorded end-September. Thus far this year, Singapore's stock market has shed over $200 billion, or 35 per cent of its capitalisation. Straits Times Index ended yesterday at 1794.20 points, 23.94 per cent down from the 2358.91 points recorded after September's last trading session.
-The Business Times, P1
Sentiment for overall outlook tanks in EDB poll of 400
Sentiment has tanked, pretty much across the board among manufacturers, and most in the services. Only those in the catering business are highly upbeat about the six months to March - in anticipation of festive feasting. The Economic Development Board's poll of almost 400 manufacturers about a month ago found a weighted 10 per cent looking to better business conditions in the coming six months, against a weighted 28 per cent who aren't half as sanguine. This gives a 'net weighted' negative balance of 18 per cent on the overall outlook. Most pessimistic appear to be manufacturers from the chemicals industry, followed by those in precision engineering and biomedical clusters. The majority of services firms, however - especially those in real estate, financial services and logistics services - are not expecting a business boom any time soon.
-The Business Times, P16
(also see The Straits Times, C22, “Businesses see bleaker outlook”)
Fewer jobs added as outlook darkens
Although the unemployment rate held steady at 2.2 per cent, manufacturing, services and construction sectors added 20 per cent fewer jobs in the last quarter. 57,800 jobs were added here in the three months that ended on Sept30 this year. This was down from 71,400 jobs added in the previous quarter, and slightly less than the 58,600 jobs added in the third quarter of last year. The export-driven manufacturing sector felt the effects most. It added 4,900 jobs in Q3 - half the number of the previous quarter. Some 1,500 of the 2,000 workers laid off in the third quarter were also from manufacturing. Official forecasts and analysts expect the ranks of the unemployed to swell in the next few quarters.
-The Straits Times, A9
(Also see The Business Times, P16, “Unemployment rate holds steady amid signs of worsening crisis”)
MNCs cutting Singapore staff
Up to 750 staff here are said to have been laid off by IM Flash Technologies, a joint venture between Intel and Micron Technology. Plans for a wafer fabrication plant which was to have been operated by IM Flash have been postponed indefinitely. As a result, most of the 750 staff, mostly non-Singaporeans, are reported to have been retrenched. American Express announced plans to cut 7,000 jobs or 10 per cent of its global workforce as part of a plan to save US$1.8 billion. Motorola also announced on Thursday that the handset maker would trim 3,000 jobs or nearly 5 per cent of its global staff.
- The Straits Times, A8
AIA Singapore lays off 20 employees
Insurer AIA Singapore laid off about 20 employees from two of its divisions on Thursday. Sources said that the cuts are unlikely to be the last among the 800-strong workforce. AIA said the job cuts affected fewer than 20 staff and the exercise was a result of a review of ongoing business strategy. The aim is to transform itself into a 'more nimble, efficient and growth-oriented company for the long term'.
- The Straits Times, A8
Indian firms set to cut one in four jobs
Indian companies are set to fire more than 25 per cent of their work force over the next 10 days, the Associated Chambers of Commerce and Industry (Assocham) said. India's so-called 'organised sector' employs some 40 million people, and it was not made clear if the lobby group meant that a quarter of them would be jobless. Its statement said the steel, cement, information technology-enabled services, financial and brokerage services, construction, real estate and aviation sectors would resort to retrenchment.
- The Straits Times, A13
Phase2 financing remains a concern: REC
Norway's Renewable Energy Corporation (REC) - which has started building in Singapore what will be the world's largest solar cell manufacturing complex - is watching closely the gathering dark clouds from the financial crisis. Addressing media queries after the construction launch of its S$3 billion phase-1 plant in Tuas yesterday, REC's president and CEO said that REC has a lot of long-term, fixed contracts through 2011-2012 and that its current S$15 billion order backlog has given it robustness and provided a buffer. But given the global credit crunch, REC is concerned about financing for the second phase of the Singapore investment. Construction of the phase-1 plant, scheduled to start up in the first quarter of 2010, is well underway.
- The Business Times, P13
a-iTrust expanding tech park in Chennai
ASCENDAS India Trust (a-iTrust) is embarking on a $62.7 million expansion of its IT park in Chennai to meet demand for business space in the Indian city. Construction at the International Tech Park Chennai (ITPC) will begin this month and could be completed in early 2010, adding 802,000 sq ft of new business space. a-iTrust expects the expansion to be yield accretive for unitholders. According to the trust, even though marketing has not begun, there are already indications of interest for 30 per cent of the new space from existing clients looking to grow their operations.
- The Business Times, P13
Crisis halves wealth of China's richest
The credit crunch and financial crisis have more than halved the combined wealth of China's richest people, Forbes magazine said as it released its annual Chinese billionaires list. The net worth of mainland China's 40 richest people fell 57 per cent to US$52 billion (S$77 billion) from US$120 billion, Forbes Asia said. Shanghai-based tycoon Liu Yongxin, who amassed US$3 billion from animal feed and aluminium production, topped the list of the richest 400 in China in a sign that traditional industries such as agriculture are becoming more attractive than retail and property development. More than 30 per cent of developers listed in the top 400 last year disappeared from this year's roster. The mainland property market is in a prolonged decline as the global credit crisis, domestic austerity measures and a sliding stock market batter the previously high-flying sector.
- The Straits Times, C1
First China centre for S'pore studies
China’s first centre for Singapore studies will open in Shenzhen University in Guangdong province today. The new centre is headed by Shenzhen University professor Lu Yuanli, who said growing interest in Singapore's system of governance among Chinese students and academics has prompted the setting up of our centre. To mark the opening, the university is hosting a two-day international conference on 'Singapore's experience and China's 30th year of reforms' today and tomorrow. Seven speakers from Singapore will present papers, together with 30 others from China and Hong Kong.
- The Straits Times, B4
Japan disappoints with grudging cut
The Bank of Japan's policy board lowered its policy lending rate by 200 basis points to 0.3 per cent. The yen resumed its rise and Tokyo stocks fell again as markets signalled apparent disappointment with the move. Tokyo's benchmark Nikkei 225 stock average fell by 5 per cent or 452.78 points to 8,576.98 yesterday while the yen rose to 97.38 yen after falling to 99.13 yen on Thursday.Central banks in the Eurozone, Britain and Australia are all expected to cut rates further next week
- The Business Times, P4
(also see The Straits Times, C24, “BOJ cuts rates for first time in 7 years”)
Palm Galleria
- Freehold
- 3-BR units from $809,000 ($723psf)
- Interest absorption scheme
- 5% down payment
- Lorong K Telok Kurau
- Attractive commission for agents
- Developer: World Class Land
- Marketing agent: L2 Group
- The Straits Times, A8 – advertisements
Livia
- “With land costing easily between $250 & $350psf coupled with high construction costs, developers’ break-event cost is at least $700psf. Livia’s average price of $650psf is definitely a steal.” – Jack Chua, ERA President & Peter Ow, Knight Frank Executive Director.
- 99-years leasehold condo (from 7 Jan 2008)
- Located just 8 minutes from Pasir Ris MRT
- Action Zone: ‘Xtreme Swing’, ‘Rocky Climb’, basketball half-court
- Located just off Pasir Ris Drive 1
- Surrounded by prestigious schools such as Singapore’s forth upcoming university at Upper Changi Road East and upcoming United World College
- 3-, 4-BR apartments and penthouses from $628 psf ($797,000)
- Expected TOP: 31 Dec 2011
- Developer: Hong Realty
- Marketing agents: ERA, Knight Frank
- The Straits Times, A24 - advertisement
Clover by the Park
- 99 years, Foreigners Eligible
- Bishan St 21-25
- 616 units
- 3, 4 Bedroom & Penthouse
- Avergage $750 psf
- Full condominium facilities available
- 50m lap pool
- Low maintenance fee
- Near Bishan Park, Bishan Sports Hall, Bishan Active Sports Hub
- Within 1km to Catholic High School, near reputed schools such as Ai Tong Primary Sch, Raffles Institution and Raffles Junior College
- Expected TOP: 31 Dec 2015
- Developer: Sim Lian Group Limited
-The Straits Times, A26 – advertisement
The Lucent
- Freehold
- 5-seater family whirlpool at balcony, steambath, private swimming pool and sundeck at rooftop for selected units
- Ceiling height of 3.3m
- 1 to 4-BR apartments and penthouses with private pools
- Special launch packages and interest absorption scheme for limited period
- Lorong N Telok Kurau
- Developer: Roxy Land
- Marketing agent: HSR
- Expected TOP: 31 Dec 2012
- The Straits Times, A36 – advertisements
City View at Boon Keng
- 99-year leasehold upon TOP
- New showflat
- Sales subject to HDB eligibility conditions
- Public housing development with 714 units under HDB “Design, Build and Sell” scheme
- Built in kitchen, wardrobes, air-conditioning system
- Eligible applicants can enjoy perks like CPF housing grants, no resale levy for 2nd time homebuyers, deferred payment scheme
- Available units: 4-BR ($532,000-$568,800), 5-BR ($539,200-$671,000)
- Option fee of 5% of purchase price payable by cash/cheque upon booking
- Expected TOP: 5 June 2011
- Developer: Hoi Hup Sunway Development
- Marketing agent: HSR
- The Straits Times, C5, advertisement
Sandy Island
- 18 villas designed by celebrated Italian architect, Claudio Silvestrin with multi-award winning Australian landscape designer, Jamie Durie
- Southern precinct of Sentosa Cove
- Private berth
- 99-year leasehold from 13 June 2007
- Expected TOP: 28 Feb 2012
- Developer: YTL
- Marketing agent: Savills
- Average sizes: 7,500 to 9,200 sq ft
- 3 villas sold - highest price at $2,100 psf
- Prices from $13.9 million
- The Straits Times, C9 - advertisement
Teresa Villas
- Freehold cluster bungalows
- 8 bungalows from 5565 sqft with private pool or Jacuzzi on hilltop
- Bukit Teresa Rd
- At the centre of the Sentosa and Marina Bay Sands IR
- Bejeweled in designere fittings & tasteful furnishings by Duravit, Damixa & Bosch
- Prices from $450 psf
- Developer: Aston Holdings & DB2 Development
- Marketing agent: Huttons
- Expected TOP: 30 Dec 2011
- The Straits Times, C13 – advertisements
The Verte
- Freehold apartment
- 35 apartment units, 1 townhouse
- Duplex penthouses – roof terraces and private Jacuzzis
- Townhouse – 3-storey with 4 bedrooms, private lap pool, personal car park, dual view of pool and park views
- Lorong H Telok Kurau
- Set against 100,000 sq ft of greenery
- Outdoor decks, private plunge pools
- 5 min walk to Kembangan MRT
- Top schools nearby – CHIJ Katong Pri, CHIJ Katong Convent
- Nearby attractions – East Coast Park, Katong Park, golf clubs such as Tanah Merah Country Club
- Expected TOP: 31 Jan 2012
- Developer: Roxy Homes
- Marketing agents: Savills
- The Straits Times, D12- advertorial