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Archive for June 6th, 2008

Yongnam secures S$84m contracts for Marina Bay Sands IR projects

Posted by luxuryasiahome on June 6, 2008

Infrastructure firm Yongnam Holdings has won two more subcontracts worth a combined S$84 million for construction works at Marina Bay Sands Integrated Resort.

The two contracts will see Yongnam build the structural steelworks for the resort’s iconic lotus-shaped ArtScience Museum, casino and theatre podium.

The latest deals come on the back of earlier contracts worth about S$178 million, announced in May 2008 and November 2007.

Both new contracts are expected to have a material impact on the group’s financial performance for financial year 2008. – CNA/ac

Source : Channel NewsAsia – 6 Jun 2008

Posted in Construction, General | Tagged: , , | Leave a Comment »

Yongnam secures S$84m contracts for Marina Bay Sands IR projects

Posted by luxuryasiahome on June 6, 2008

Infrastructure firm Yongnam Holdings has won two more subcontracts worth a combined S$84 million for construction works at Marina Bay Sands Integrated Resort.

The two contracts will see Yongnam build the structural steelworks for the resort’s iconic lotus-shaped ArtScience Museum, casino and theatre podium.

The latest deals come on the back of earlier contracts worth about S$178 million, announced in May 2008 and November 2007.

Both new contracts are expected to have a material impact on the group’s financial performance for financial year 2008. – CNA/ac

Source : Channel NewsAsia – 6 Jun 2008

Posted in Construction, General | Tagged: , , | Leave a Comment »

Yongnam secures S$84m contracts for Marina Bay Sands IR projects

Posted by luxuryasiahome on June 6, 2008

Infrastructure firm Yongnam Holdings has won two more subcontracts worth a combined S$84 million for construction works at Marina Bay Sands Integrated Resort.

The two contracts will see Yongnam build the structural steelworks for the resort’s iconic lotus-shaped ArtScience Museum, casino and theatre podium.

The latest deals come on the back of earlier contracts worth about S$178 million, announced in May 2008 and November 2007.

Both new contracts are expected to have a material impact on the group’s financial performance for financial year 2008. – CNA/ac

Source : Channel NewsAsia – 6 Jun 2008

Posted in Construction, General | Tagged: , , | Leave a Comment »

130-room Raffles Moscow set to open in 2011

Posted by luxuryasiahome on June 6, 2008

Raffles Hotels & Resorts is set to open in Moscow in 2011. The 130-room Raffles Moscow will be managed by Raffles under a long-term contract that may last more than 20 years.

An agreement was sealed with its partner ALT Corporation, witnessed by Senior Minister Goh Chok Tong who is currently on a visit to Moscow.

Raffles Hotel said the new property will be located in Moscow’s business district, near prominent landmarks like the Red Square, Kremlin and Bolshoi Theatre.

The stately building, currently managed by ALT Corporation, will soon undergo redevelopment to transform it into a luxurious hotel.

Average room rates are likely to range between US$800 and US$1,000 a night.

Raffles Moscow will be part of a larger development, which will include apartments, high-end retail galleries as well as historic buildings, such as an 18th century Russian Orthodox Church and the house where Napoleon Bonaparte occasionally stayed.

Raffles Moscow will feature six restaurants and a bar, and a 1,300-square-metre RafflesAmrita Spa.

Raffles and ALT are also exploring other opportunities in the St Petersburg area. – CNA/ms

Source : Channel NewsAsia – 6 Jun 2008

Posted in General, Hotel, Overseas Property | Tagged: , , | Leave a Comment »

130-room Raffles Moscow set to open in 2011

Posted by luxuryasiahome on June 6, 2008

Raffles Hotels & Resorts is set to open in Moscow in 2011. The 130-room Raffles Moscow will be managed by Raffles under a long-term contract that may last more than 20 years.

An agreement was sealed with its partner ALT Corporation, witnessed by Senior Minister Goh Chok Tong who is currently on a visit to Moscow.

Raffles Hotel said the new property will be located in Moscow’s business district, near prominent landmarks like the Red Square, Kremlin and Bolshoi Theatre.

The stately building, currently managed by ALT Corporation, will soon undergo redevelopment to transform it into a luxurious hotel.

Average room rates are likely to range between US$800 and US$1,000 a night.

Raffles Moscow will be part of a larger development, which will include apartments, high-end retail galleries as well as historic buildings, such as an 18th century Russian Orthodox Church and the house where Napoleon Bonaparte occasionally stayed.

Raffles Moscow will feature six restaurants and a bar, and a 1,300-square-metre RafflesAmrita Spa.

Raffles and ALT are also exploring other opportunities in the St Petersburg area. – CNA/ms

Source : Channel NewsAsia – 6 Jun 2008

Posted in General, Hotel, Overseas Property | Tagged: , , | Leave a Comment »

The only way is up?

Posted by luxuryasiahome on June 6, 2008

Some economists say short-term rate has bottomed out, but they expect increases to be tiny

THE period of rock-bottom interest rates may be over, with some experts tipping that levels in Singapore are set to head north – but at a gentle pace.

The three-month Singapore Interbank Offered Rate (Sibor) – the level at which banks lend to each other – is at 1.3 per cent. That is still a remarkably modest rate, but it is up from the 12-month low of 1.25 per cent a few days ago.

It is also dramatically lower than the 3.1875 per cent in March last year, before rates began plunging.

Economists expect rate rises to be tiny, but home owners might think it smart to refinance mortgages before rates creep up.

The rates pressure is coming from the United States. The Sibor tends to track US rates, which are tipped to rise by 50 basis points by year end.

Dr Chua Hak Bin, Asian strategist at Deutsche Bank Private Wealth Management, said: ‘I believe the short- term interest rate has bottomed out. Our rates track the US rates quite closely, and there is a sense that the Fed, after a 325 basis point cut, is due to raise rates soon.’

He expects rates to rise to 1.4 per cent in 12 months and to go back to above 2 per cent in three years.

OCBC Bank economist Selena Ling said: ‘We would expect the short-term interest rate to rise to 1.5 per cent by year end. It won’t rise sharply because the Monetary Authority of Singapore (MAS) is still on a tight monetary policy to combat inflation.’

But HSBC economist Robert Prior-Wandesforde sees things differently: ‘We are not expecting a Fed hike before the end of this year, and I’m still looking for the three-month Sibor to fall to 1 per cent over the next few months. With the MAS thought to keep the Singapore dollar strong, this is encouraging foreign inflows, which in turn is depressing interest rates.’

One indicator of where short-term rates might be headed lies in the bond market, where long-term interest rates seem to have spiked.

The 10-year Singapore Government Securities bond yield was 2.73 per cent in the middle of last month, but has now risen to 3.6 per cent.

United Overseas Bank’s treasury research head, Mr Jimmy Koh, said: ‘We have inflation climbing in the region, making long-term rates move up. Over time, this could drag up short- term rates.’

He also noted that central banks in Indonesia and the Philippines have already started raising short-term interest rates.

Deutsche Bank’s Dr Chua said: ‘Long-term interest rates are determined by long-term views on growth and inflation. As risk appetite returns, these might move up faster than the short-term rates because of inflation risks, and the Fed may not be able to move as fast as we hope.’

Whatever the cause, rising interest rates affect everyone, from bank savers to homebuyers and retirees looking for a good return on their cash.

If the Sibor rises, so might bank deposit rates in time to come. A DBS Bank spokesman said: ‘Our rates will move in tandem with market forces.’

Home owners might also think it prudent to switch to a fixed-term mortgage now as rates are linked to the Sibor.

Mr Prior-Wandesforde said ‘it is worth thinking seriously about shifting to a fixed rate’.

He added: ‘Although fixed-term mortgage rates haven’t come down that much during the recent decline in short-term market rates, they also didn’t rise as much as one would have expected during the period of rising short-term rates from 2005 to 2006.’

‘We would expect the short-term interest rate to rise to 1.5 per cent by year end. It won’t rise sharply because MAS is still on a tight monetary policy to combat inflation.’ – OCBC BANK ECONOMIST SELENA LING

CPF rates could rise

LONG-TERM interest rates are up, which means that Central Provident Fund (CPF) rates, which track the 10-year Singapore Government Securities (SGS) bond rate, could also rise.

The link was made on Jan 1 this year when the CPF rate was set at the SGS rate plus 1 per cent.

This extra interest is paid on the first $60,000 in a member’s combined CPF accounts, with up to $20,000 from the Ordinary Account (OA). That means the Government has guaranteed a 3.5 per cent annual return for the first $20,000 in the OA, and 5 per cent a year for the $40,000 in the Special, Medisave and Retirement Accounts (SMRA) for this year and the next.

The floor rate for the SMRA will be kept at 4 per cent for the first two years, beginning this year. After that, the 2.5 per cent rate will apply to all accounts.

But with the SGS bond rate now at 3.6 per cent, this means CPF’s rate should actually be 4.6 per cent, said Dr Chua Hak Bin, the Asian strategist at Deutsche Private Wealth Management.

He added that the CPF would have to revise its rate upwards to match this figure, if it holds, when the two years are up.

‘This is good news because we haven’t seen this level of yield since September

Source : Straits Times – 6 Jun 2008

Posted in Finance, General, Singapore Economy | Tagged: , , , , , | Leave a Comment »

The only way is up?

Posted by luxuryasiahome on June 6, 2008

Some economists say short-term rate has bottomed out, but they expect increases to be tiny

THE period of rock-bottom interest rates may be over, with some experts tipping that levels in Singapore are set to head north – but at a gentle pace.

The three-month Singapore Interbank Offered Rate (Sibor) – the level at which banks lend to each other – is at 1.3 per cent. That is still a remarkably modest rate, but it is up from the 12-month low of 1.25 per cent a few days ago.

It is also dramatically lower than the 3.1875 per cent in March last year, before rates began plunging.

Economists expect rate rises to be tiny, but home owners might think it smart to refinance mortgages before rates creep up.

The rates pressure is coming from the United States. The Sibor tends to track US rates, which are tipped to rise by 50 basis points by year end.

Dr Chua Hak Bin, Asian strategist at Deutsche Bank Private Wealth Management, said: ‘I believe the short- term interest rate has bottomed out. Our rates track the US rates quite closely, and there is a sense that the Fed, after a 325 basis point cut, is due to raise rates soon.’

He expects rates to rise to 1.4 per cent in 12 months and to go back to above 2 per cent in three years.

OCBC Bank economist Selena Ling said: ‘We would expect the short-term interest rate to rise to 1.5 per cent by year end. It won’t rise sharply because the Monetary Authority of Singapore (MAS) is still on a tight monetary policy to combat inflation.’

But HSBC economist Robert Prior-Wandesforde sees things differently: ‘We are not expecting a Fed hike before the end of this year, and I’m still looking for the three-month Sibor to fall to 1 per cent over the next few months. With the MAS thought to keep the Singapore dollar strong, this is encouraging foreign inflows, which in turn is depressing interest rates.’

One indicator of where short-term rates might be headed lies in the bond market, where long-term interest rates seem to have spiked.

The 10-year Singapore Government Securities bond yield was 2.73 per cent in the middle of last month, but has now risen to 3.6 per cent.

United Overseas Bank’s treasury research head, Mr Jimmy Koh, said: ‘We have inflation climbing in the region, making long-term rates move up. Over time, this could drag up short- term rates.’

He also noted that central banks in Indonesia and the Philippines have already started raising short-term interest rates.

Deutsche Bank’s Dr Chua said: ‘Long-term interest rates are determined by long-term views on growth and inflation. As risk appetite returns, these might move up faster than the short-term rates because of inflation risks, and the Fed may not be able to move as fast as we hope.’

Whatever the cause, rising interest rates affect everyone, from bank savers to homebuyers and retirees looking for a good return on their cash.

If the Sibor rises, so might bank deposit rates in time to come. A DBS Bank spokesman said: ‘Our rates will move in tandem with market forces.’

Home owners might also think it prudent to switch to a fixed-term mortgage now as rates are linked to the Sibor.

Mr Prior-Wandesforde said ‘it is worth thinking seriously about shifting to a fixed rate’.

He added: ‘Although fixed-term mortgage rates haven’t come down that much during the recent decline in short-term market rates, they also didn’t rise as much as one would have expected during the period of rising short-term rates from 2005 to 2006.’

‘We would expect the short-term interest rate to rise to 1.5 per cent by year end. It won’t rise sharply because MAS is still on a tight monetary policy to combat inflation.’ – OCBC BANK ECONOMIST SELENA LING

CPF rates could rise

LONG-TERM interest rates are up, which means that Central Provident Fund (CPF) rates, which track the 10-year Singapore Government Securities (SGS) bond rate, could also rise.

The link was made on Jan 1 this year when the CPF rate was set at the SGS rate plus 1 per cent.

This extra interest is paid on the first $60,000 in a member’s combined CPF accounts, with up to $20,000 from the Ordinary Account (OA). That means the Government has guaranteed a 3.5 per cent annual return for the first $20,000 in the OA, and 5 per cent a year for the $40,000 in the Special, Medisave and Retirement Accounts (SMRA) for this year and the next.

The floor rate for the SMRA will be kept at 4 per cent for the first two years, beginning this year. After that, the 2.5 per cent rate will apply to all accounts.

But with the SGS bond rate now at 3.6 per cent, this means CPF’s rate should actually be 4.6 per cent, said Dr Chua Hak Bin, the Asian strategist at Deutsche Private Wealth Management.

He added that the CPF would have to revise its rate upwards to match this figure, if it holds, when the two years are up.

‘This is good news because we haven’t seen this level of yield since September

Source : Straits Times – 6 Jun 2008

Posted in Finance, General, Singapore Economy | Tagged: , , , , , | Leave a Comment »

The only way is up?

Posted by luxuryasiahome on June 6, 2008

Some economists say short-term rate has bottomed out, but they expect increases to be tiny

THE period of rock-bottom interest rates may be over, with some experts tipping that levels in Singapore are set to head north – but at a gentle pace.

The three-month Singapore Interbank Offered Rate (Sibor) – the level at which banks lend to each other – is at 1.3 per cent. That is still a remarkably modest rate, but it is up from the 12-month low of 1.25 per cent a few days ago.

It is also dramatically lower than the 3.1875 per cent in March last year, before rates began plunging.

Economists expect rate rises to be tiny, but home owners might think it smart to refinance mortgages before rates creep up.

The rates pressure is coming from the United States. The Sibor tends to track US rates, which are tipped to rise by 50 basis points by year end.

Dr Chua Hak Bin, Asian strategist at Deutsche Bank Private Wealth Management, said: ‘I believe the short- term interest rate has bottomed out. Our rates track the US rates quite closely, and there is a sense that the Fed, after a 325 basis point cut, is due to raise rates soon.’

He expects rates to rise to 1.4 per cent in 12 months and to go back to above 2 per cent in three years.

OCBC Bank economist Selena Ling said: ‘We would expect the short-term interest rate to rise to 1.5 per cent by year end. It won’t rise sharply because the Monetary Authority of Singapore (MAS) is still on a tight monetary policy to combat inflation.’

But HSBC economist Robert Prior-Wandesforde sees things differently: ‘We are not expecting a Fed hike before the end of this year, and I’m still looking for the three-month Sibor to fall to 1 per cent over the next few months. With the MAS thought to keep the Singapore dollar strong, this is encouraging foreign inflows, which in turn is depressing interest rates.’

One indicator of where short-term rates might be headed lies in the bond market, where long-term interest rates seem to have spiked.

The 10-year Singapore Government Securities bond yield was 2.73 per cent in the middle of last month, but has now risen to 3.6 per cent.

United Overseas Bank’s treasury research head, Mr Jimmy Koh, said: ‘We have inflation climbing in the region, making long-term rates move up. Over time, this could drag up short- term rates.’

He also noted that central banks in Indonesia and the Philippines have already started raising short-term interest rates.

Deutsche Bank’s Dr Chua said: ‘Long-term interest rates are determined by long-term views on growth and inflation. As risk appetite returns, these might move up faster than the short-term rates because of inflation risks, and the Fed may not be able to move as fast as we hope.’

Whatever the cause, rising interest rates affect everyone, from bank savers to homebuyers and retirees looking for a good return on their cash.

If the Sibor rises, so might bank deposit rates in time to come. A DBS Bank spokesman said: ‘Our rates will move in tandem with market forces.’

Home owners might also think it prudent to switch to a fixed-term mortgage now as rates are linked to the Sibor.

Mr Prior-Wandesforde said ‘it is worth thinking seriously about shifting to a fixed rate’.

He added: ‘Although fixed-term mortgage rates haven’t come down that much during the recent decline in short-term market rates, they also didn’t rise as much as one would have expected during the period of rising short-term rates from 2005 to 2006.’

‘We would expect the short-term interest rate to rise to 1.5 per cent by year end. It won’t rise sharply because MAS is still on a tight monetary policy to combat inflation.’ – OCBC BANK ECONOMIST SELENA LING

CPF rates could rise

LONG-TERM interest rates are up, which means that Central Provident Fund (CPF) rates, which track the 10-year Singapore Government Securities (SGS) bond rate, could also rise.

The link was made on Jan 1 this year when the CPF rate was set at the SGS rate plus 1 per cent.

This extra interest is paid on the first $60,000 in a member’s combined CPF accounts, with up to $20,000 from the Ordinary Account (OA). That means the Government has guaranteed a 3.5 per cent annual return for the first $20,000 in the OA, and 5 per cent a year for the $40,000 in the Special, Medisave and Retirement Accounts (SMRA) for this year and the next.

The floor rate for the SMRA will be kept at 4 per cent for the first two years, beginning this year. After that, the 2.5 per cent rate will apply to all accounts.

But with the SGS bond rate now at 3.6 per cent, this means CPF’s rate should actually be 4.6 per cent, said Dr Chua Hak Bin, the Asian strategist at Deutsche Private Wealth Management.

He added that the CPF would have to revise its rate upwards to match this figure, if it holds, when the two years are up.

‘This is good news because we haven’t seen this level of yield since September

Source : Straits Times – 6 Jun 2008

Posted in Finance, General, Singapore Economy | Tagged: , , , , , | Leave a Comment »

Life in a self-contained township

Posted by luxuryasiahome on June 6, 2008

one-north aims to be a place where residents can work, live, learn and play seamlessly. CLARISSA TAN reports

IT’S Friday morning. Your alarm rings. You decide to swim a few laps, so you head for the rooftop pool. Then you stroll to work, which takes only a few minutes. Throughout the day, you rub shoulders with academics, media types, a few artists.

Later you want to welcome the weekend with a bang. A host of restaurants and bars are just a short walk or an MRT stop away. And while your workplace is an impressive, futuristic building, you can opt to dine in a cosy colonial setting.

Living in one-north will help you enjoy this kind of lifestyle, according to some property developers and consultants. The 200-hectare area around Buona Vista, which includes scientific research centre Biopolis and media hub Fusionoplis, aims to be a place where residents can ‘work, live, learn and play’ seamlessly.

one-north’s ’self-contained township’ concept and proximity to a research-and-development hub, the Science Park and education campuses are a draw for researchers, academics and professionals, says Ku Swee Yong, director of marketing and business development at property consultant Savills Singapore.

‘Singapore has just begun to reap the benefits of R&D in the pure sciences,’ he says. ‘one-north is expected to contribute the lion’s share in the commercialisation value of these efforts’.

Two residential projects are under construction at one-north – one-north Residences and The Rochester.

The Rochester, going by the job-home-leisure concept, is a mixed development that will comprise a condominium, a business hotel and a mall.

The cluster will have ‘unparalleled accessibility,’ says Jackson Yap, group managing director and chief executive of developer United Engineers.

‘There’s the East-West MRT line a five-minute walk away at Buona Vista station and the Circle Line to be running by 2011. It is also a short drive to Orchard Road and walking distance to Holland Village.’

The Rochester Condominium will have 366 units. Besides being near the sleek towers of Biopolis and Fusionopolis, it will be flanked by the lush Rochester Park, a green belt with colonial black-and-white bungalows that have been leased to food-and-beverage outlets.

‘It enjoys all the amenities of a mature residential estate with the greenery of the Rochester Hill in the background,’ says Mr Yap.

The Rochester Mall will be 100,000 sq ft and the business hotel, called Park Avenue Suites @ The Rochester, will have 350 rooms.

‘Apart from serving business travellers to one-north, the hotel will cater to medical tourists, with the National University Hospital and Gleneagles in the vicinity,’ Mr Yap says.

It will also attract ‘edu-tourists’ on short-term post-graduate courses at the nearby INSEAD business school and the National University of Singapore, he adds.

The entire project should be completed by 2011.

one-north Residences, developed by Vista Development, will have about 400 residential units and 20 street retail units. Its design concept leans towards glass and steel, with blocks connected by sky bridges, and fits in with the area’s master plan to create a ‘fenceless’ community.

‘Because there is a limited supply of residential projects there, demand for housing will be extremely great from expatriates who work there,’ says Emily Eng, associate director of the residential department of Knight Frank, the project’s marketing consultant and agent.

‘People who buy see the potential of the hub. After all, the government has committed to spend $15 billion to develop this city within the city.’

Savills’ Mr Ku says a development like one-north Residences will ‘allow like-minded experts and professionals to get together, mingle and socialise within a short walk of their home.’

Such is the concern for seamless interconnectivity that if you’re the sort who prefers to roll out of bed and into the office, you can opt to live in the very building where you work.

Fusionopolis, a twin-tower, 24-floor skyscraper dedicated to ‘infocomms’ or media and IT-related businesses, will house 50 serviced apartments. These units will have access to a rooftop pool, a clubhouse and skygardens – as well as five floors of entertainment and retail outlets including a supermarket, restaurants, a bookstore and a food court.

While one-north may look scientific, high-tech and top-speed at first glance, it also has a more laidback and historical side. Nestled in a green enclave is the Wessex Estate, a close-knit cluster of black-and-white houses and apartments built by the British in the 1940s.

While the various blocks of the Biopolis complex are given names such as Neuros, Genome and Chromos, the apartment buildings of Wessex Estate bear names that recall another time – Waterloo, Somme, Lucknow, Pegu.

And unlike the colonial district at Rochester Park, which now features restaurants and bars, the Wessex Estate is still very much residential and has a strong neighbourhood feel. The aim is to foster it as a home for artists, teachers, writers and actors. A few of the apartment blocks have been converted into work lofts for people involved in the creative and fine arts.

The Wessex Estate has always had interconnectivity of its own. For decades, its inhabitants could head down to the nearby Colbar (short for Colonial Bar), where pickled onions and fish-and-chips are on the menu.

The Colbar still exists and is as popular as ever, but recently it has been joined by two new restaurants, a cafe and a cocktail bar – all of them forming an area called the Village Square.

At sundown, when you chug your beer at the square, perhaps you will see the twinkling lights of the hovering skyscrapers.

Source : Business Times - 6 Jun 2008

Posted in General, Masterplan, One North | Tagged: , , , , , , , , , , , , , , , , | Leave a Comment »

Little choice but to offer less choice sites

Posted by luxuryasiahome on June 6, 2008

Developers fear oversupply; the govt must offer some sites but may not waste prime sites

THE six-monthly Government Land Sales (GLS) programme announcement is just around the corner, and property industry players are once again voicing the familiar calls for the government to reduce its quantum of land sales, and to halt sales through the confirmed list – except for strategic reasons – and to instead offer sites only through the reserve list.

The players wanted this even when the market was buoyant. Given the subdued conditions now, they may have a stronger case for moderating the GLS programme in the second half of 2008.

But numbers alone won’t do. The focus must also be on the quality of sites on offer. The 99-year leasehold private residential sites offered by the state in H1 2008 yielded a mixed bag of results. Some have attracted numerous bids at high prices while others did not. In one case, the bids were too low for the government to make an award.

In other words, certain sites are in demand, others are not.

What kind of sites does the market want now?

There is enough supply of high-end private residential sites, so the government need not bother about supplying land in the prime districts.

As for the mid and mass markets, the locations in demand are near MRT stations, and/or with water views, in close proximity to major shopping centres, good schools and other amenities.

A site’s location could decide whether it’s likely to be sold under current cautious market conditions. A tender that closed in March for a condo site facing West Coast Park and overlooking the sea drew a dozen bids. In contrast, there were only two bids for a landed housing plot at Jurong West and the Government decided against awarding it.

These days, developers will only be drawn to land parcels with strong selling points.

Clearly, more waterfront housing sites will be welcome – a point catered for in the draft Master Plan 2008 revealed last month.

And given the rising private transportation costs, homes near MRT stations will probably command an even bigger premium than they do today.

Unattractive sites may attract bids that are too low for the Ministry of National Development to make an award. This could affect the already-fragile sentiment in the residential market. So the MND should focus on choice plots in its H2 2008 list, the argument would go.

CBRE’s update of the MND’s H1 2008 programme shows that five private residential sites have been sold so far through the confirmed list. These are in various choice locations outside the city – near Khatib MRT Station fronting Lower Seletar Reservoir, at Lorong 2/3 in Toa Payoh near Braddell MRT Station, at West Coast Crescent overlooking the sea, in Choa Chu Kang, close to Lot 1 Shoppers’ Mall and the MRT station, and Phase 2 of Sembawang Greenvale near the sea.

Developers have yet to make a single successful application for reserve list private housing sites in the H1 2008 slate – with the sentiment being weak and the reserve plots generally not boasting choice locations.

While the government launches plots under the confirmed list for tender according to a prestated schedule regardless of market demand, it releases reserve list sites only if there is a successful application by a developer who undertakes to bid at a minimum price acceptable to the state.

So will the MND release the sort of sites the developers want? As a seasoned market player puts it: ‘They’re very practical people. When the market sentiment is weak, why give away their good sites at subdued prices?’

Instead, the MND may offer more run-of-the mill sites. Such plots may draw poor interest, and this could affect sentiment. However, developers may still like the end result: not much new land actually being sold by the state.

Put simply, the outcome developers desire – of having less state land being sold – may be effected if the government offers a slate of mostly not-so-desirable plots.

The current weak demand makes it clear there’s no housing shortage in Singapore.

A moderation of land supply sold by the government would lend some support to the market. Another benefit if the government ends up selling less land is that it will provide some relief to the overheated construction sector.

On the other hand, the government may not be able to accede to developers’ calls not to sell land in H2 2008 through the confirmed list – as official data have so far not shown any decline in private home prices, despite thin sales volumes.

The government also has to balance the need to provide stability to home prices with the aspirations of Singaporeans who have yet to buy private homes.

The MND will likely be prudent and moderate the GLS programme for H2 2008. A shorter list of sites in both confirmed and reserve lists, with stronger emphasis on less choice locations, could do the trick.

Source : Business Times - 6 Jun 2008

Posted in General, Land Sales | Tagged: , | Leave a Comment »