DAILY MARKET UPDATES 6th November 2008

Property ventures: Popular has to watch its booksPopular's fundraising attempt at this juncture is likely to fuel speculation about its ability to support its property investments. The company has put up more than $71 million in four land purchases so far. Popular has two construction projects eating into its resources - One Robin and 18 Shelford. With cash and fixed deposits amounting to $45.3 million as at July 31, the group is more than able to settle the $13.7 million debt due within a year or on demand. Its net gearing ratio also rests at a comfortable 0.14 times.- The Business Times, P8
Credit checks cut risks if deferred payments returnDevelopers lauded the swiftness of the government action that will hopefully stem the poor sentiment in the property market when Ministry of National Development announced that it was suspending sales of state land through the confirmed list till June next year. Some developers were also hopeful that the government will reintroduce the Deferred Payment Scheme (DPS), which was scrapped in October last year to deter speculation. To cut this risk of fuelling speculation, the DPS could be reincarnated but with modifications, suggests Savills' Mr Ku.
- The Business Times, P4
Prime office rents falling amid turmoilAfter rising steeply for several years, prime office rents are on the way down as landlords move to retain good tenants in uncertain economic times. They fell 5 per cent last month and could fall another 10 to 20 per cent over the next six months, according to consultancy Cushman & Wakefield. But the fall in net effective prime office rents was even more pronounced last month as landlords became more flexible in negotiating rents. Supply-wise, there are more choices now than just a few months ago, but the bulk of the fresh office space supply will come onstream from 2010. So, while the downward slide in office rents is expected to continue, the speed should slow temporarily till nearer to 2010.- The Straits Times, B18
Racial barrier falls as change comes to America
With 349 electoral votes against Senator McCain's 173, the Democrat defeated Republican and Barack Obama will be sworn in on Jan 20 next year as the 44th US president - and the first African-American one.
- The Business Times, P1
(Also see, The Straits Times, A8, “Economy top on Americans' minds”)
Jakarta property sector expects slowdownIndonesia's property business in Jakarta and surrounding areas will see a slowdown next year due to increases in interest rates, inflation, prices of materials and rental costs, quoted by The Jakarta Post. High interest rates, inflation and prices of materials had discouraged developers from continuing their projects. Indonesian central bank's interest rate currently stands at 9.5 per cent, with accumulative inflation already hitting double digits in the first 10 months of 2008.- The Business Times, P31
LTA partners tech firms to realise its visionSix research collaborators - the EDB, IDA, Cisco, IBM Singapore, ST Electronics and 3M Tech - inked a memorandum of collaboration with LTA. Dubbed Singapore Urban Transport Solution, $54 billion worth of projects to improve Singapore's land transport network are expected to be completed in the next 10 to 15 years. LTA's new research initiative, part of its Land Transport Masterplan, will tap a $50 million fund set up in March by LTA to promote innovation. Funding will also come from EDB and IDA. LTA said its initiative will kick off with four research clusters, namely, traffic optimisation, transport telematics, integrated user experience, and environment and energy.- The Business Times, P24
UK Reit investors brace for new write-downs
Few expect an end to the savage asset markdowns, slim dividends and profit cuts seen in the past 18 months, as dark economic portents accelerate the repricing of UK real estate. Britain's largest shopping mall owner Liberty International reveals third-quarter figures on Wednesday, one day before the Bank of England is expected to slash the UK base borrowing rate for the second consecutive month. Both Liberty and retail rival Hammerson may be forced to concede softer letting terms - or risk a glut of defaults next year, Nomura analysts said. In August, Liberty had already upped provisions for tenant failures. According to JPMorgan, the EPRA Europe index posted its worst ever monthly performance in October, slumping 21.5 per cent - almost double the second worst month in June 2008, when European property stocks dived 12.2 per cent.
- The Business Times, P32
Clean energy: Global tab may be $67 trillion
Closer to US$45 trillion (S$67 trillion) will need to be spent over the next 40 years to set up infrastructure to produce this renewable energy - and this sum does not include funds needed for research. Several economic reports - including Britain's Stern Review and an upcoming report by Australian economist Ross Garnaut - agree that as much as 20 per cent of global gross domestic product could be jeopardised if the world's environmental problems are left unchecked. At the moment, renewable energy is being produced only in megawatt units, but the planet needs to start thinking about generating it in gigawatts - each 1,000 times a megawatt - to scale back the dependence on fossil fuels.
- The Straits Times, B7
Property slump hits NY commercial market
New York City commercial real estate transactions plunged 61 per cent this year through October as the global credit crisis roiled lending and sidelined buyers. About US$17 billion of transactions have closed so far and the market is headed for its worst year since 2004. Sellers have made 237 deals of US$5 million or more, a four-year low in a market that posted a record US$51 billion in sales last year. The 14-member Bloomberg Office Reit Index lost 43 per cent in the 12 months through October, led by Maguire Properties Inc and SL Green Realty Corp, which together control almost 50 million square feet of office space in the Los Angeles and New York metropolitan areas. Office property loans fell 65 per cent, retail property loans fell 63 per cent and industrial property loans slid 57 per cent.- The Business Times, P30
ERP trial for Britain
British drivers could find themselves paying around 80 pence (S$1.88) per km for the privilege of using the country's most congested roads. The government has confirmed that it is recruiting hundreds of drivers to test the satellite-based scheme. The onboard unit could also be used to automatically deduct congestion charges and bridge and motorway tolls from users' accounts, and might eventually be used to collect payment for the use of every road a driver takes. Like Singapore's electronic road pricing (ERP) charges, the price of using a particular road is likely to vary according to the time of day, as well as the direction of travel and the scale of congestion.
- The Straits Times, A20
D.10 The Fernhill
- 1 Fernhill Rd
- 25 units, exclusive development
- Off Orange Grove / Stevens Rd
- Views towards White House Pk
- Proximity to Shangri-La Hotel
- Private lift access / basement car park
- Facilities include swimming pool & gym
- Freehold / Foreigners eligible
- TOP approx : March 2009
- Remaining 20 units for sale, ENBLOC basis only
- 2 bdrms, 1066 sq ft / 3 bdrms, 1,572 sq ft / 4 bdrms, 1,819 sq ft
- Units with private enclosed space & Penthouses also available
- Advert, The Business Times, P31
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