Sales in the private residential market have dipped in April after a mild recovery in March.

According to the numbers of private home sales released by the Urban Redevelopment Authority (URA), only 274 units were sold last month – down from 301 units in March.

Developers were also holding back, with only 271 units launched in April – the lowest number of units since market weakness surfaced in September last year.

Analysts said they expect the market to continue moving gingerly.

Homebuyers in the mass market are keeping the numbers moving along as nine out of every 10 units sold in April were in the suburban areas. This belies the overall cautious stance that homebuyers are taking.

Chua Chor Hoon, Senior Director of Research, DTZ Debenham Tie Leung, said: “Speculation is almost nil. Most buyers we see in the market are probably those buying for owner occupation, with needs for accommodation.”

With buying and selling almost at a standstill, analysts said the ball is now in the developers’ court.

Colin Tan, Director of Research & Consultancy, Chesterton International, said: “Looking forward, you can see that in order to raise their sales, developers will need to price their units more realistically. As you can see from the April figures, those that have done so are being rewarded with higher sales.”

But the URA figures also show that prices remain firm for high-end units and developers for those units are choosing to wait out.

“Developers are still holding back launches, especially for bigger projects and those at higher end range. What we see are mostly launches in suburban areas with units priced below S$1,000 psf,” Mr Chua said.

While the latest data may seem to provide more evidence of a weak housing market, analysts said numbers are very thin and have cautioned against reading too deeply into them as they could be potentially misleading. - CNA/so

Source : Channel NewsAsia - 15 May 2008

Number of new homes sold and launched fall sharply

PRIVATE home sales weakened further last month, with the number of new homes launched and sold dropping sharply from March.

Developers launched just 271 units in April, most of them in mass market projects. This was less than half of what they launched in March, and the lowest number since the Urban Redevelopment Authority started releasing monthly sales figures last June.

Buyers took up 274 homes, down from the 301 sold in March.

Prices also continued to dip, with the median price of new sales sliding 8.9 per cent to $943 per sq ft.

Among the best-selling projects last month were the 56-unit Stadia in Yio Chu Kang Road, which sold 52 units, and the 88-unit Breeze by the East in Upper East Coast Road, where 22 units were sold.

The 848-unit Lakeshore in Jurong West saw another 32 units sold, while 14 units were taken up at the 625-unit Quartz in Buangkok.

Source : Straits Times - 15 May 2008

Singapore hotel rates will continue to rise this year despite the slowing global economy due to a shortage of rooms, the head of the city state’s largest hotel operator said on Thursday.

‘Because of the sub-prime crisis, the higher-end … hotels have less ability to increase their rates. But we are still having a shortage,’ said City Developments executive chairman Kwek Leng Beng.

He told reporters on the sidelines of a real estate conference that there had been many periods this year when the company’s hotels in Singapore were 100 per cent occupied due to the sharp rise in intra-Asian travel.

Singapore’s average hotel room rate rose 24 per cent to $238 (US$172.70) a night in the 12 months to March, bringing it close to the level in Hong Kong, which stood at HK$1,362 (US$174.60).

Occupancy levels in the city state averaged 87 per cent last year, above the 85 per cent mark that hoteliers consider optimal to manage any daily mismatch between supply and demand.

Mr Kwek said the rise in intra-regional travel within Asia and changing lifestyles would ensure demand for rooms remains strong even if there is a decline in visitors from the West.

‘In the old days, you go for holidays once a year. Now you go three to four times a year,’ he said.

CityDev owns the ultra-luxury St Regis hotel in Singapore and is the largest shareholder in CDL Hospitality Trusts, a property trust that owns five hotels in the city state. — REUTERS

Source : Business Times - 15 May 2008

The US sub-prime crisis has begun to hurt Asian property markets, the real estate investment arm of the Government of Singapore Investment Corporation (GIC) said at the FT Asia Property Summit on Thursday.

While Wall Street starts picking up the pieces from the sub-prime crisis, GIC said, the Asian property market has just started to feel the impact.

The investor added the fallout would be even greater if the US went into a full-blown recession.

Seek Ngee Huat, president of GIC Real Estate, said: “The contagion effects of the sub-prime crisis can potentially put a downward spin (on) the current cycle. While the sub-prime crisis may be seen essentially as a transatlantic problem, its ripple effects are certainly being felt here in Asia.”

GIC, however, remained upbeat, saying that the sub-prime meltdown presents not just threats but also opportunities.

It noted that Asia will continue to be the growth region of the future, attracting foreign investors in search of higher returns and diversification, as emerging cities in China and India move aggressively to become first-tier cities in the world in 10 to 20 years.

Mr Seek said: “It, therefore, may make sense to take some short-term risk in order to position for the long term, for many of these institutional investors. In fact, if one takes a long view, the pricing in emerging markets, which is starting from a low base, should have tremendous upside.”

GIC Real Estate has some 300 investments spread across 30 countries around the world. - CNA/ac

Source : Channel NewsAsia - 15 May 2008

The real estate arm of sovereign wealth fund the Government of Singapore Investment Corp (GIC) said on Thursday that the US sub-prime crisis is beginning to hurt Asian property markets such as Japan and Australia.

‘The contagion effects of the sub-prime crisis can potentially accelerate the downward spin of the current property cycle,’ Seek Ngee Huat, the president of GIC Real Estate, said in a speech at a property industry conference.

‘Some market weakening is being sensed in Asia, particularly in Japan and in Australia.’

The comments came after Dubai World, the investment firm of the Dubai government, said last month the US sub-prime housing crisis has slowed its investment decisions this year, but it is still holding on to US real estate assets.

GIC, estimated to be the world’s third-largest sovereign wealth fund with US$330 billion in assets, is also ranked among the world’s top 10 property investors, owning buildings such as Merrill Lynch’s London office and Westin Paris.

GIC’s Mr Seek said that he sees opportunities amid the sub-prime wreckage, but added there would be competition from other institutional players.

‘As always weak markets favour those with the capacity to take strategic positions, and so the sub-prime meltdown presents threats as well as opportunities,’ he said.

Mr Seek said GIC started out investing in developed markets and only started to focus on emerging markets in Asia in the mid-1990s.

Singapore, which saw private home prices jump 31 per cent in 2007 in the largest rise in eight years, is witnessing a slowdown as sales volumes slumped in the first quarter to the lowest since the 2003 Sars epidemic.

The Singapore government’s moves to cool the property market, by ending a scheme that allowed delayed payments, coupled with the impact of a global slowdown, have already hit the bottomline of developers CapitaLand and Keppel Land. — REUTERS

Source : Business Times - 15 May 2008

Several buildings have won silver and bronze in the Building and Construction Authority’s (BCA’s) annual Universal Design (UD) Awards 2008.

The office housing Xilinx’s Asia Pacific headquarters which boasts natural sunlight, wide passageways and employee-friendly facilities clinched the silver award.

Changi Airport Terminal 3 clinched the silver award

However, the competition which has been held for the second year, did not see any gold award winners again.

Its organiser, BCA has raised the benchmark.

Professor Cheong Hee Kiat, Chairman, Universal Design Award Panel, said: “We need buildings to provide UD the facilities, more comprehensively in an integrated manner. And I suppose, another thing is that UD is relatively new in Singapore, and so it will take time for developers and owners to raise the standards by which they provide UD designs. “

Singapore Changi Airport’s Terminal 3 is another one of the three silver award recipients.

Besides new buildings, the award also recognises upgraded buildings like the old National Museum of Singapore which is now called the Singapore History Museum. It also grabbed the silver award.

Among the six bronze recipients was the Mandai Crematorium & Columbarium which was completed in 2004.

Some of its award-winning features include smooth integration with adjacent buildings and its user-friendly layout.

Other bronze award recipients include Ang Mo Kio Bus Interchange, The Coris condominium, Ghim Moh Gardens housing estate, IMM Building and Plaza Singapura shopping mall. - CNA/vm

Source : Channel NewsAsia - 15 May 2008

The building boom in Singapore and the Middle East is proving to be a boon for engineering and construction company Yong Nam Holdings.

Its net profit for the first quarter rose 267 percent to about S$6 million. Revenues increased 56 percent to S$47.4 million.

Yong Nam saw increased activities from projects such as Orchard Turn, Marina Bay Sands Integrated Resort, Formula One and the Dubai Metro Rail.

Going forward, Yong Nam said it is optimistic that the strong operational performance will continue in financial year 2008.

The company is citing the government’s S$50 billion plan to improve the Singapore’s transport infrastructure in the coming years.

This includes the construction of the Marina Coastal Expressway, the Thomson MRT line, the MRT Downtown line and the Eastern Region MRT line.

The Building and Construction Authority has estimated that 2008 will see a record S$27 billion in construction contracts being awarded – 10 percent higher than the year before.

In the Middle East, Yong Nam said it continues to experience an upsurge of infrastructure developments.

The company’s order book stood at S$277 million as at March 31. - CNA/so

Source : Channel NewsAsia - 15 May 2008

Following the S$13 million makeover of Anchorpoint Shopping Centre, Frasers Centrepoint Trust has plans to turn its attention to other suburban malls under its stable.

Anchorpoint’s new look appears to be getting the thumbs up from retailers.
Lee Hsien Yang, chairman of Fraser & Neave, said: “Anchorpoint used to be occupied by furniture shops, but I think we felt there was a niche in the market for this kind of concept, so we mixed it with food and beverage. We think people will come and try, and we think we have some interesting restaurants here.”

Rents have gone up by 40 percent following the makeover to as much as S$7.50 psf.

Since refurbishments were completed in March this year, the mall has seen a jump of almost 20 percent in shopper traffic and Frasers expects this to increase substantially going forward.

Frasers’ next step is an almost S$40 million expansion of Northpoint, which is due to complete in mid-2009. This will be followed by works on Yew Tee Mall, which comes under its wing next year, and Bedok Mall by 2011.

The REIT said it is continuing to look for overseas potential.

Christopher Tang, CEO of Frasers Centrepoint Trust, said: “We are looking into the emerging market of Vietnam. We are looking at some of the malls there and other than that, we already have two malls in China that are under development. We will be launching a smaller suburban mall in Australia soon.”

Despite the anticipated global economic slowdown, Frasers said it remains bullish about Singapore’s retail and urban mall sector.

The latest numbers show that retail sales rose by a better-than-expected 5.6 percent in March, compared to a year ago. - CNA/so

Source : Channel NewsAsia - 15 May 2008

Mainboard listed Banyan Tree Holdings on Thursday announced it has booked a 38 per cent increase in first quarter earnings.

Its net income for the three months ended March 31 came in at S$15.4 million, largely driven by growth in its hotel investment and hotel residence/property sales segments.

Its revenue rose by 34 per cent to S$140.3 million.

Banyan Tree said it is cautiously optimistic for the next few quarters.

It has a strong pipeline of 49 new resorts opening over the next four years, with 11 new spas expected to open in the next few quarters.

Ho Kwon Ping, executive chairman of Banyan Tree, said: “What we see for the balance of this year - both in terms of hotel business and property sales remain strong.

“We do not seem to be affected by the sub-prime crisis. So we remain optimistic that this year, we should be able to perform quite well.” - CNA/ac

Source : Channel NewsAsia - 15 May 2008

Resorts developer, Banyan Tree Holdings Limited, today announced a 38 per cent increase in net profit to $15.4 million, largely driven by hotel investment and hotel residences/property sales segments.

Revenue grew 34 per cent to $140.3 million.

‘Hotel Investment segment continue to perform well in line with our expectation and we are optimistic that the positive trend will continue into the rest of 2008,’ executive chairman, Ho Kwon Ping said.

The strong growth in Hotel Investment segment was mainly due to better performance from resorts in Laguna Phuket, Banyan Tree Bangkok and the newly refurbished Angsana Velavaru, coupled with additional revenue from the newly opened Banyan Tree Madivaru and Angsana Riads Collection, Morocco.

Mr Ho added:’Barring unforeseen circumstances, we therefore remain cautiously optimistic on the performance of the Group in the next few quarters.’

The company has in the pipeline close to 50 resorts slated to be opened in the next four years. These were previously announced. — BT Newsroom

Source : Business Times - 15 May 2008