Developers' sales carry note of hope
A ray of hope dispelled some gloom in the private home market yesterday when new data showed developers selling 1,220 new units in March. This brings the number sold in Q1 2009 to 2,660 - the best quarterly performance since Q3 2007. According to Urban Redevelopment Authority (URA) figures from developer submissions, private home sales held up in March and dipped just 8 per cent below the 1,332 units sold in February. Both months' showings were markedly better than in January, when buyers took up just 108 units. In fact, the number of units sold in Q1 2009 has already reached around 60 per cent of that for the whole of 2008. Most of the demand in the first three months of the year was from Singaporeans and permanent residents, a significant proportion of whom comprised HDB upgraders.
- BT P1
Parco set to add zest to Millenia Walk
MILLENIA Walk mall may soon get the magic it needs to offer the wow factor to shoppers now it has signed Japan's Parco group as a tenant to take up 85,000 sq ft on three levels. Parco will invest about $10 million at Millenia Walk. Parco@Millenia, which will open early next year, will be a hybrid between a department store and shopping centre. Under an open-concept theme, Parco will sub-let space to sub-tenants, but they will not install roller shutters for their units. The first level will feature an array of international cosmetics, fragrances and fashion-related products. Parco will join Harvey Norman and Space, a high-end furniture store, as anchor tenants at Millenia Walk.
- BT P28
URA launches tender for Short Street hotel site
FOR the first time since September last year, the Urban Redevelopment Authority has launched a public tender to sell land. The tender for the 99-year leasehold hotel site at Short Street in the Bras Basah-Bugis district will close on June 10. The 12,535.6 sq ft site is ideal for a boutique hotel development located in an area with a 'synergistic cluster of arts, culture and education facilities', URA said in its release. The site is also near the future Rochor MRT station. The site can accommodate a 12-storey hotel with about 90 to 100 rooms. Singapore has close to 10,000 rooms in the four- and five-star categories slated to come onstream by end-2012.
- BT P28
M'sian economy set to improve in H2: Zeti
IN one of the first public statements on the economy by a senior government official, central bank governor Zeti Akhtar Aziz said yesterday that the Malaysian economy would be in 'a better position' in the second half of the year because of the effects of the fiscal stimulus package and a supportive monetary environment. Last month, the government announced a RM60 billion (S$25 billion) stimulus package aimed at reflating the economy, out of which RM15 billion are actual funds with the rest being indirect means such as financial guarantees. In addition, the central bank has slashed rates by over 150 basis points to 2 per cent currently, Malaysia's official forecast for the economy this year is a range between a one per cent contraction and one per cent growth, which is the figure Ms Zeti was referring to. MIER predicted that the central bank could cut interest rates to 1.5 per cent or lower, from 2 per cent at present, to bolster the economy. It also forecast inflation at 2 per cent this year and unemployment at 4.8 per cent.
-BT P13
Bleak Q1 profit forecast for China's listed firms
China's listed companies are poised to report their biggest earnings fall in at least 21/2 years, but that could be the beginning of an end for bad news as the economy starts to bottom out. Signs are mounting that, after a bleak first quarter, the tumble in earnings will begin easing in the current quarter with the rates of decline beginning to shrink, as Beijing's US$586 billion two-year economic stimulus plan kicks in. Chinese banks posted a combined 30 per cent earnings rise for 2008, and analysts expect they could still see 10-20 per cent earnings growth for all 2009, buoyed by government steps to push them to do more business to boost the economy.
- BT P14
Homes sales remain strong
THE bumper private property sales recorded in February were no fluke. For a second straight month, home hunters defied the weakening economy to buy more than 1,000 units last month. Property consultants say buyers are attracted to what they regard as good buys in the moderately priced mass market. Still, they warn that these strong buying levels are probably not sustainable. Last month, property developers sold 1,220 new private homes, just shy of the 1,332 units sold in February. It was the first time in over a year that the market has seen two consecutive months with more than 1,000 units sold. Sales for both months were a stunning contrast to the dismal 108 in January. Another striking figure: First-quarter new private home sales hit 2,660 units, representing 62% of all new homes sold during the whole of last year. February sales - boosted mainly by two new launches Alexis and Caspian - were the highest since August 2007. Figures compiled by the URA also showed 832 new housing units were launched last month, compared with 1,072 units in February and just 204 units in January. Most units sold last month were in the mass market, along with a few city-fringe small-format apartments at condominiums such as Domus and The Mercury.
- ST p1
HDB prices on their way down
One-third of sales in Q1 were at below valuation which is good news for buyers eyeing resale flats. The level in some areas was far higher and some buyers did not have to put up much cash upfront to buy their dream home. The trend indicates that HDB flats are now coming down at a quicker rate after holding up better than private residential properties. Top 10 areas sold below value were: Clementi (5-rm) - $500K ($70K below valuation), Tampines (exec) - $515K ($65K below valuation), Geylang (5-rm) - $525K ($63K below valuation), Bukit Merah (5-rm) - $610K ($60K below valuation), Bukit Panjang (Exec) - $400K ($56K below valuation), Toa Payoh (5-rm) - $555K ($53K below valuation), Queenstown (4-rm) - $442K ($48K below valuation), Bishan (5-rm) - $540K ($48K below valuation), Clementi (5-rm) - $400K ($45K below valuation) and Clementi (4-rm) - $310K ($45K below valuation) – data from ERA, PropNex, C&H Realty
- ST pA4