DAILY MARKET UPDATES 25th October 2008

URA figures ease fears of housing glut URA had lowered its forecast of home completions for 2010 and beyond for a 2nd quarter. It now expects only 8,538 homes to be ready in 2010 - down substantially from the 11,788 homes that it had forecast in Q2. In all, its forecast for the number of uncompleted homes in the pipeline dropped to 67,463 units in the third quarter, from 71,643 units in the second and 74,208 units in the first. Number of private homes expected to be completed: 2008: 2,440, 2009: 10,033, 2010: 8,538, 2011: 16,145, 2012: 16,742, 2012: 13,565, Total 67,463.
For more details: http://www.ura.gov.sg/pr/text/2008/pr08-107.html - The Straits Times, C23 (See also, The Business Times, P4 – “URA date shows more completions put on hold”)
S'pore lauded as slum-free city S’pore is the only city in the world without slums, a new report by the United Nations Habitat has found. In Asia, where half the population lives in cities, a third live in slums, the bi-annual State of the World's Cities 2008/2009 report said. These were defined as areas where there was overcrowding, a lack of safe drinking water, sanitation, durable housing materials and rights over tenure. The director of UN Habitat's monitoring and research division said the achievement was one that should be studied and, if possible, replicated in other cities.
- The Straits Times, B4 (See also, The Business Times, P15 – “UN lauds S’pore urban devt”)
CapitaLand to hold back on investing till crisis abates CapitaLand will hold back on investments until the global credit crisis shows signs of bottoming, CEO Liew Mun Leong said. They are evaluating opportunities to invest about $4 billion and will wait for signs that the rout in financial markets is nearing an end, he added. The developer has invested about half of the $9 billion it earned from asset sales over the last two years. Losses this year have erased almost $10billion from the company's market value. 'Just because we have cash doesn't mean we will spend it,' Mr Liew said. 'There's no harm in conserving cash until the situation is clearer.'
- The Straits Times, C26
Storm over Sands in US hits local IR lenders In August, Marina Bay Sands said it was on schedule to open in December 2009 and about 40 per cent of the construction had been completed. And even if the parent company decides to sell the project to another outfit, there will be bidders aplenty, one banker said. 'People will compete to be here. The biggest driver of casinos is competition, the biggest fear is competition,' he added. STB had projected 17 million tourist arrivals by 2015, although there is now doubt if those numbers are achievable. This year's target of 10.8 million visitors may not be met because Singapore visitor arrivals are down. According to data from the board, June was down 4.1 per cent over last year, July dipped 3.8 per cent and August posted the steepest fall at 7.7 per cent.
- The Business Times, P3
Sands mogul seeks $3b Casino mogul Sheldon Adelson has said he is seeking to raise US$2 billion (S$3 billion) in debt financing from Asian banks to complete work on expansion projects planned by Las Vegas Sands Corp in Macau. The Cotai Strip project in Macau, due to be completed in 2011, is to include retail malls plus hotels that will be operated by some of the biggest names in hospitality, such as Sheraton, St Regis, Hilton, Conrad, Shangri-La and Traders. He disputed reports that Las Vegas Sands, which operates the Venetian and Palazzo resorts in Las Vegas and the Sands Macao and Venetian Macao in the Chinese city, had abandoned plans to secure funding or was having trouble getting banks to agree to terms.
- The Straits Times, A18
Credit cards can be used for ERP Effective next month, for a monthly subscription of $2.50, ERP payments can be charged to any Visa or MasterCard, just like for other purchases. Motorists who do this will therefore not need to slot the CashCard into the in-vehicle unit (IU). The IU, however, will stay put to 'communicate' with the gantry on the details of the charge so the credit card can be billed. To apply for the credit card-linked payment service, motorists have to register at both these sites from Nov 5 : www.onemotoring.com.sg & www.motorpay.com.sg
- The Straits Times, B2
Private property prices, rents fall URA's data showed that developers sold 1,558 private homes in Q3, up 2.2 per cent from 1,525 units in Q2. The 3,845 private homes developers sold in the first nine months of this year are about a quarter of the 14,811 units they sold for the whole of last year. The number of private-home subsales islandwide fell 10.8 per cent quarter on quarter to 462 in Q3. n the Core Central Region, subsales made up 24.1 per cent of total transactions in Q3, an increase from a 22 per cent share in Q3. The rising subsale share in the region was on the back of a 29 per cent drop in developer sales in Q3. Meanwhile, URA's Q3 price indices for non-landed private homes fell 2.7 per cent quarter on quarter in Core Central Region, 2.4 per cent in Rest of Central Region and 1.5 per cent in Outside Central Region (OCR). The official price indices for office and shop space declined 3.9 per cent and 0.3 per cent respectively in Q3. The all-industrial property price index rose 0.9 per cent. The public housing market continued to buzz, with Housing & Development Board's resale flat price index rising 4.2 per cent quarter on quarter in Q3.
-The Business Times, P4 (See attached, “Property Price Index”) (See also, The Straits Times, A1 & A4 - “Private home prices & rents down”)
Private property prices seen falling 5-6% in '09-10 NUS economist Tilak Abeysinghe's forecasts see the domestic economy growing 3 per cent in 2009 - and one percentage point higher and lower under the best and worst-case scenarios. In all three scenarios, his simulations result in 5-6 per cent price falls a year in 2009 and 2010. Only in the optimistic outlook is there a projected 1.4 per cent rebound in 2011. Already, the latest official figures show a 2.4 per cent dip in private housing prices in the third quarter from Q2 - the first decline since the property market bottomed out in 2004. The affordability index for private property owners in the medium income group averaged 1.2 over the period 1980-2007. This implies that if the household bought a property that cost $1 million, it would be left with $200,000 of income over its lifetime. For high-income households, the index is a stronger 2.1 over the period 1980-2007. That's still well below the index for HDB households - which ranges from three for the low-income group to 9.4 for the richest.
- The Business Times, P16
HDB prices up as demand rises Figures released yesterday by the HDB and URA show HDB's resale price index rose 4.2 per cent in the third quarter. This means that in the first nine months of 2008, HDB resale prices climbed 12.4 per cent. The number of transactions also increased in Q3 to 8,110, from 7,760 in Q2. In contrast, private mass-market properties put up a decidedly lacklustre showing in Q3. Prices of non-landed properties in the outside central region - where most mass-market private homes are located - fell 1.5 per cent. More people are also eligible to buy HDB flats now. Statistics show the number of Singapore citizens and PRs is set to hit a record this year. In the first half of 2008, there were 34,800 new PRs and 9,600 new citizens, up from 28,500 new PRs and 7,300 new citizens in H1 last year.
- The Business Times, P36 (See attached, "HDB prices")
MM sees 3-5% Asia growth as world recovers Driven by China and India, Asia will still see annual growth of 3-5 per cent as the world economy recovers in the next three to five years, says Minister Mentor Lee Kuan Yew. Employers should use the down-time to build up the skills and knowledge of their workers for the upturn in the economy, he said. The government will push on with the continuing education and training of workers, Mr Lee said. He also said that in a globalised world of greater mobility and competition, the ability to attract and retain talent is the key to economic success. Singapore has won and lost talent, but its important that it 'wins more than it loses', he said. 'Without foreign talent, Singapore would not be where it is today.'
- The Business Times, P14 (See also, The Straits Times, A3 – “Recovery in 3 to 5 years?”)
Asia to pool US$80b to protect currencies Thirteen Asian countries yesterday agreed to pool about US$80 billion (S$120.7 billion) in foreign exchange reserves by next June to better protect their currencies against the growing economic uncertainty. China, Japan, and South Korea would provide about 80 per cent of the funds, with Asean countries contributing the rest. The Asian financial crisis prompted Asean, China, Japan, and South Korea to establish a regional financing arrangement called the 'Chiang Mai Initiative' in May 2000. This scheme allowed a country facing a foreign exchange crisis to swap its currency for those of its neighbours.
- The Straits Times, A12 (See also, The Business Times, P5 – “US$80b Asian currency swap scheme soon”)
Markets sink One of the worst-hit bourses on a panic-fuelled day was South Korea's Kospi index, which dropped 10.6 per cent to its lowest closing level since 2005 - ending its worst week in two decades. Japan's Nikkei-225 index, dropped 9.6 per cent to its lowest finish in more than five years. The biggest loser was India, whose stock index plummeted 11 per cent in its biggest drop in 16 years. Hong Kong's Hang Seng Index and Singapore's STI both dived 8.3 per cent. Australian stocks slid a relatively modest 2.6 per cent. Wall Street's 2 per cent gain overnight was largely ignored in the region. In Singapore, investors dumped bank and property plays en masse, as the STI closed down 14.8 per cent for the week. Property counters were hit after quarterly data showed private home prices slumped for the first time since 2004.
- The Straits Times, A1 (See also, The Business Times, P1 – “Dynamics of a financial tsunami”)
Central banks urged to calm forex markets The IMF is hurrying to approve by early next month a package that would allow certain emerging market economies exchange local currencies for US dollars to ease short-term credit strains, officials familiar with the plans said late on Thursday. The so-called liquidity swap facility would be available to a group of pre-selected 'top tier' emerging market countries - those that are well-run but may be having difficulties obtaining credit, the officials told Reuters. Leaders from the Group of 20 top economies, including G-7 and leading emerging economy governments, are scheduled to meet in Washington on Nov 15 to discuss a response to the global economic and financial crisis.
- The Straits Times, A8
Crisis a danger to even big emerging nations S.Korea and emerging nations South Africa, Hungary, Poland, Turkey, Mexico, Colombia have lost more than 25 per cent of their currency value. Unlike Iceland or Hungary, S.Korea is a major industrial power; its US$960 billion economy was the 13th-largest in the world last year. But its stock markets and currency have dropped more than 30 per cent, with concern now over its banks. If pushed, it could use its foreign currency reserves of US$240 billion to repay all the cash its banks have borrowed from abroad - about US$235 billion - leavinig it with nothing in the reserves. 'Our foreign currency reserves are more than sufficient now,' said governor of the Financial Supervisory Service Korea. 'But if (this) continues for two or three years, we may (need) other plans.'
- The Straits Times, A15
Jakarta agrees to bail out Dutch bank Indonesia's Parliament yesterday gave the green light to the central bank to bail out its Dutch subsidiary Indonesische Overzeese Bank NV (Indover), a move that could cost it 546 million euros (S$1 billion). Earlier this month, it asked the World Bank for a standby loan of US$1.9 billion (S$2.8 billion). It has also downgraded its growth forecast to between 5.5 per cent and 6 per cent from an earlier estimate of 6.3 per cent. On Oct 6, Indover defaulted on a US$92 million loan, prompting the Dutch central bank to declare that Indover was a 'bank in emergency'. It also appointed administrators to manage it. A week later, Indover administrators asked Bank Indonesia for 250 million euros in emergency funds. But the Indonesian central bank - under a new law passed in 2004 - can help out only banks based in Indonesia. Hence it sought lawmakers' approval for an exception to be made.
- The Straits Times, A3
China mends ties with Germany At the present time, the overall development of Chinese-German relations is good and the two sides are maintaining close high-level contact,' state-run CCTV quoted Mr Hu as telling Dr Merkel on the sidelines of the Asia-Europe Meeting (Asem) which brings together more than 40 nations. 'China considers Germany to be an important cooperation partner.' State-run Xinhua news agency reported both sides also 'sent a strong signal to further boost bilateral ties'. China and Germany regard each other as very important partners in dealing with the financial crisis and in economic affairs,' said a German government spokesman.
- The Straits Times, C7
Sandy Island - 99 yrs - Sentosa Cove, Southern Precint - 18 Villas are individually designed by Italian architect Claudio Silvestrin, while the works the landscape is designed by Australian landscape designer Jamie Durie.
- Built-up areas range from 7,500 to 9,200 sq ft, land between 7,000 to 10,000 sq ft - 5 Bedrooms with ensuite bathrooms - Passenger lift connecting all flrs - Foreigners eligible - Private Berths - Expected TOP: May 2010 - Developer: YTL -The Business Times, P2 - advertisement
Riz Haven - 946 yrs lease from 1938, foreigners eligible - 33 units - From $587 psf onwards, $378,165 per unit onwards - Easy accessibility to Downtown East, White Sands, beach - Complemented with lifestyle facilities that include swimming pool & gym - Sophisticated finishes & fittings in 1+1, 2+1, 3+1 bedroom apartments & 2+1, 3+1 & 4+1 bedroom penthouses with roof terrace
- Near United World College & S’pore’s fourth university at Upper Changi Rd East - Interest Absorption Scheme available - Expected TOP: 31 May 2010 - Developer: Tras Development Pte Ltd -The Straits Times, C22 - advertisement

The Lucent - 5 seater whirlpool on balcony *selected units only - Steam bath in Master bedroom *selected units only - Private swimming pool and sundeck on rooftop/porch *selected units only - Regally-appointed interiors with unparalleled ceiling height of up to 3.3m - Elegant communal recreational area with pools, gym, BBQ area & playground - Idyllic environment near East Coast Park & Siglap Centre - Within 1 km from well-known schools (Tao Nan Sch, CHIJ & Victoria JC) - Freehold - 1-4 bdrm apartments & penthouses with private pools available - Special launch packages & interest absorption scheme available - Expected TOP: 31 Dec 2012 - Developer: Roxy Land Pte. Ltd. - Marketing agents: HSR - The Straits Times, A35 - advertisement