Oct 21, 2007
2,000 high-end homes may be launched soon About 30 new condos may be launched by early next year, at least half of them in Orchard, Bukit Timah and Holland
By Fiona Chan, Property Reporter
SALES of new homes took a dive last month, but they might pick up soon as developers prepare to launch a string of projects over the next few months.
Almost 30 new condominiums could come on the market by early next year, said property consultancy Knight Frank.
'Market sentiments are gradually picking up following the United States sub-prime crisis, and launches could also increase in tandem,' said Mr Nicholas Mak, Knight Frank's director of research and consultancy.
He estimates that more than half of the launches will be in the prime districts of 9, 10 and 11 - Orchard, Holland, Bukit Timah and Newton - as well as in luxury enclave Sentosa Cove.
If all these projects are launched as planned, about 2,000 high-end homes could flood the market over the next six months, added Mr Mak. Broadly speaking, these are properties that will cost at least $2,000 per sq ft (psf), with a three-bedroom unit going for at least $2.5 million, he said.
'We are definitely counting on foreigners to come in and help absorb these homes, so we don't end up with an oversupply problem in the top tier,' he said. Residential areas likely to be in the spotlight include Bukit Timah, Thomson, Holland Village and East Coast. This is because prices in these areas have not moved as much as those in areas such as River Valley, Newton and Orchard.
Colliers International also predicted benchmark prices for two upcoming projects: the Ritz-Carlton Residences in Cairnhill and the development on the former Asia Hotel site. Prices at these projects could hit $4,500 psf on average, said Mr Vincent Chong, Colliers' residential sales director.
Mr Mak believes there will be few launches in the closely-watched mass-market segment until the middle of next year because developers started acquiring sites only recently.
'Most launches will come in nine to 18 months' time, and they are likely to be priced on the high side at $800 to $900 psf,' he said. 'Until then, most activity will be in the resale market, where a lack of new launches could push prices up significantly.'
Sunday, October 21, 2007
Friday, October 19, 2007
Business Times: Sites in Jurong, Holland, Orchard up for sale
October 18, 2007
Sites in Jurong, Holland, Orchard up for sale2 prime freehold sites could fetch $670-$700m each in collective sales
By KALPANA RASHIWALA
THREE sites for residential development were launched for tender yesterday - a 99-year leasehold, traditional suburban mass-market housing plot next to Lakeside MRT Station in the Jurong area, as well as two freehold, prime district sites offered through the collective sales of Villa delle Rose off Holland Road and Elizabeth Towers at Mount Elizabeth.
Villa delle Rose, with a land area of 297,132 sq ft, has a guide price of $700 million, which reflects a unit land price of $1,758 psf of potential gross floor area, inclusive of an estimated $31 million development charge. The site is zoned for residential use with a 1.4 plot ratio (ratio of maximum potential gross floor area to land area) and a four-storey maximum height under Master Plan 2003.
Its marketing agent CB Richard Ellis conducted an expression of interest for the property which ended in August and is said to have received offers of up to slightly over $1,600 psf per plot ratio (psf ppr). The EOI exercise had been launched before approval from majority owners was secured, which CBRE recently obtained.
CBRE executive director Jeremy Lake said in a news release yesterday that 'a few parties have approached us with keen interest, but the owners would like a transparent public tender to achieve the best results'.
Villa delle Rose, developed by Pontiac Land and Keck Seng, comprises 104 units ranging from 2,800 sq ft to 3,200 sq ft. All but a handful of units are rented out, CBRE said.
Over in the Orchard Road area, Elizabeth Towers' owners are looking at $673 million for their 54,318 sq ft site. This works out to $2,666 psf ppr. No development charge is payable. Planning approval has been obtained from the Urban Redevelopment Authority to build up to a plot ratio of 4.647, translating to a maximum gross floor area of 252,416 sq ft.
In Jurong, URA has launched the tender for a 2.2-hectare site flanked by Lakeside MRT Station and LakeHolmz condo. Property consultants reckon the site can be developed into around 680 apartments averaging 1,200 sq ft.
CBRE executive director Li Hiaw Ho estimates the site to be worth about $300 psf ppr, translating to a breakeven cost for a new condo at about $650 psf and an average selling price of about $700-750 psf.
Knight Frank, which predicts the site will draw between four and eight bids, estimates the site's land price at $325-$375 psf ppr, or a breakeven cost of around $650-$720 psf.
The firm's managing director, Tan Tiong Cheng, said developers will take into account the fact that the 'Jurong area has traditionally been a slower-moving market compared with other suburban/mass market locations'.
CBRE said that units in The Lakeshore condo a short distance away from the latest site are currently being marketed by its developer at around $800 psf.
In the subsale market, Lakeshore units have been sold recently at $650-750 psf, while apartments at The Centris one MRT station away have been changing hands at about $600-650 psf.
The Lakeholmz, a completed development, has been seeing sales in the $550-600 psf range, according to CBRE research.
Sites in Jurong, Holland, Orchard up for sale2 prime freehold sites could fetch $670-$700m each in collective sales
By KALPANA RASHIWALA
THREE sites for residential development were launched for tender yesterday - a 99-year leasehold, traditional suburban mass-market housing plot next to Lakeside MRT Station in the Jurong area, as well as two freehold, prime district sites offered through the collective sales of Villa delle Rose off Holland Road and Elizabeth Towers at Mount Elizabeth.
Villa delle Rose, with a land area of 297,132 sq ft, has a guide price of $700 million, which reflects a unit land price of $1,758 psf of potential gross floor area, inclusive of an estimated $31 million development charge. The site is zoned for residential use with a 1.4 plot ratio (ratio of maximum potential gross floor area to land area) and a four-storey maximum height under Master Plan 2003.
Its marketing agent CB Richard Ellis conducted an expression of interest for the property which ended in August and is said to have received offers of up to slightly over $1,600 psf per plot ratio (psf ppr). The EOI exercise had been launched before approval from majority owners was secured, which CBRE recently obtained.
CBRE executive director Jeremy Lake said in a news release yesterday that 'a few parties have approached us with keen interest, but the owners would like a transparent public tender to achieve the best results'.
Villa delle Rose, developed by Pontiac Land and Keck Seng, comprises 104 units ranging from 2,800 sq ft to 3,200 sq ft. All but a handful of units are rented out, CBRE said.
Over in the Orchard Road area, Elizabeth Towers' owners are looking at $673 million for their 54,318 sq ft site. This works out to $2,666 psf ppr. No development charge is payable. Planning approval has been obtained from the Urban Redevelopment Authority to build up to a plot ratio of 4.647, translating to a maximum gross floor area of 252,416 sq ft.
In Jurong, URA has launched the tender for a 2.2-hectare site flanked by Lakeside MRT Station and LakeHolmz condo. Property consultants reckon the site can be developed into around 680 apartments averaging 1,200 sq ft.
CBRE executive director Li Hiaw Ho estimates the site to be worth about $300 psf ppr, translating to a breakeven cost for a new condo at about $650 psf and an average selling price of about $700-750 psf.
Knight Frank, which predicts the site will draw between four and eight bids, estimates the site's land price at $325-$375 psf ppr, or a breakeven cost of around $650-$720 psf.
The firm's managing director, Tan Tiong Cheng, said developers will take into account the fact that the 'Jurong area has traditionally been a slower-moving market compared with other suburban/mass market locations'.
CBRE said that units in The Lakeshore condo a short distance away from the latest site are currently being marketed by its developer at around $800 psf.
In the subsale market, Lakeshore units have been sold recently at $650-750 psf, while apartments at The Centris one MRT station away have been changing hands at about $600-650 psf.
The Lakeholmz, a completed development, has been seeing sales in the $550-600 psf range, according to CBRE research.
Business Times: HDB expects stock of unsold flats to drop to 2,200 b
October 18, 2007
HDB expects stock of unsold flats to drop to 2,200 units by year-end
By ARTHUR SIM
THE stock of unsold Housing and Development Board (HDB) flats, which stood at about 10,000 three years ago, is now down to 3,500, and the board expects the stock to fall to 2,200 units by the end of the year.
Speaking at a press conference to release the HDB Annual Report 06/07 on Tuesday, HDB CEO Tay Kim Poh said: 'Positive growth has resulted in strong demand for HDB flats.'
Indeed, according to the figures in the latest annual report, demand appears to have outstripped supply.
For the financial year ended March 31, HDB sold 5,712 new flats, down from 10,100 flats in the previous year, a drop of over 40 per cent. But the number of flats completed in the year was also down, to just 1,764, a decline of nearly 60 per cent from the 4,378 flats of the 2005-06 period, perhaps explaining the recent spike of 6.5 per cent in HDB's Resale Price Index (flash estimate) for open market flats.
As at March 31, 14,212 flats were under construction, compared to 12,571 in the previous year. These flats have already been launched, and Mr Tay said: 'BTO (Built-to-Order) subscription is also very high.'
HDB's latest bi-monthly balloting/walk-in sale exercise also suggests that demand is high, with the 489 flats offered now almost 10 times oversubscribed. Four thousand and eight hundred online applications have been received so far.
New supply of about 6,000 flats from BTO exercises and the Design, Build and Sell Scheme is expected over the next six months but managing supply and demand will be a challenge.
HDB said that a projected 6,300 flats will be completed in FY07-08, followed by 1,700 in FY08-09, 4,000 in FY09-10, and 13,000 in FY10-11.
Savills Singapore director (marketing and business development) Ku Swee Yong said: 'Assuming about 5,000 to 7,000 flats are completed between 2008 and 2009, we are at best even on supply and demand.'
Mr Ku said improved economic conditions and population growth could have some impact on this balance.
It is, of course, difficult to predict future demand. A case in point would be the backlog of 10,000 unsold flats just three years ago.
Knight Frank director (research and consultancy) Nicholas Mak said that in the past, HDB built flats 'speculatively', hence the backlog. But, with the current practice of BTO exercises, the building programme has become more 'market responsive'.For now, any unsatisfied demand will have to be supplied by the resale market. 'The resale market is very big and has great capacity to increase demand,' added Mr Mak, but he also cautioned: 'If the economy and job market continues to expand, we can expect demand for new flats to spill over into the resale market and this could impact prices.'
While resale prices have gone up, the HDB said that the number of resale applications actually fell 7 per cent in FY06-07. This could be because HDB buyers are still very price sensitive.
HSR Property Group senior vice-president Donald Yeo said that he does not believe a supply crunch is imminent because many potential buyers already own HDB flats. Based on feedback from HSR property agents, Mr Yeo said that about eight out of 10 buyers already own flats, so even if there is a desire to buy a new flat - regardless of whether it is to upgrade or downgrade - there is no dire need to.'
Buyers who find resale prices too high are also prepared to wait for new flats rather than buy from the resale market,' he added.
HDB expects stock of unsold flats to drop to 2,200 units by year-end
By ARTHUR SIM
THE stock of unsold Housing and Development Board (HDB) flats, which stood at about 10,000 three years ago, is now down to 3,500, and the board expects the stock to fall to 2,200 units by the end of the year.
Speaking at a press conference to release the HDB Annual Report 06/07 on Tuesday, HDB CEO Tay Kim Poh said: 'Positive growth has resulted in strong demand for HDB flats.'
Indeed, according to the figures in the latest annual report, demand appears to have outstripped supply.
For the financial year ended March 31, HDB sold 5,712 new flats, down from 10,100 flats in the previous year, a drop of over 40 per cent. But the number of flats completed in the year was also down, to just 1,764, a decline of nearly 60 per cent from the 4,378 flats of the 2005-06 period, perhaps explaining the recent spike of 6.5 per cent in HDB's Resale Price Index (flash estimate) for open market flats.
As at March 31, 14,212 flats were under construction, compared to 12,571 in the previous year. These flats have already been launched, and Mr Tay said: 'BTO (Built-to-Order) subscription is also very high.'
HDB's latest bi-monthly balloting/walk-in sale exercise also suggests that demand is high, with the 489 flats offered now almost 10 times oversubscribed. Four thousand and eight hundred online applications have been received so far.
New supply of about 6,000 flats from BTO exercises and the Design, Build and Sell Scheme is expected over the next six months but managing supply and demand will be a challenge.
HDB said that a projected 6,300 flats will be completed in FY07-08, followed by 1,700 in FY08-09, 4,000 in FY09-10, and 13,000 in FY10-11.
Savills Singapore director (marketing and business development) Ku Swee Yong said: 'Assuming about 5,000 to 7,000 flats are completed between 2008 and 2009, we are at best even on supply and demand.'
Mr Ku said improved economic conditions and population growth could have some impact on this balance.
It is, of course, difficult to predict future demand. A case in point would be the backlog of 10,000 unsold flats just three years ago.
Knight Frank director (research and consultancy) Nicholas Mak said that in the past, HDB built flats 'speculatively', hence the backlog. But, with the current practice of BTO exercises, the building programme has become more 'market responsive'.For now, any unsatisfied demand will have to be supplied by the resale market. 'The resale market is very big and has great capacity to increase demand,' added Mr Mak, but he also cautioned: 'If the economy and job market continues to expand, we can expect demand for new flats to spill over into the resale market and this could impact prices.'
While resale prices have gone up, the HDB said that the number of resale applications actually fell 7 per cent in FY06-07. This could be because HDB buyers are still very price sensitive.
HSR Property Group senior vice-president Donald Yeo said that he does not believe a supply crunch is imminent because many potential buyers already own HDB flats. Based on feedback from HSR property agents, Mr Yeo said that about eight out of 10 buyers already own flats, so even if there is a desire to buy a new flat - regardless of whether it is to upgrade or downgrade - there is no dire need to.'
Buyers who find resale prices too high are also prepared to wait for new flats rather than buy from the resale market,' he added.
Business Times: Economy's solid growth to spill into 2008: NTU
October 18, 2007
Economy's solid growth to spill into 2008: NTU
It cites uptick in world electronics demand, sizzling construction activity
By LYNETTE KHOO
THANKS to the sustained health of the global economy, an uptick in world electronics demand and sizzling construction activity here, the rosy picture for Singapore's economy will persist into next year, Nanyang Technological University economists said yesterday.
Singapore's gross domestic product is expected to grow 8.3 per cent this year and 7.5 per cent in 2008, the Econometric Modelling Unit (EMU) of the Economic Growth Centre at NTU said in its bi-annual forecast for the economy.'
The expected growth in 2008 is due to external demand conditions, mainly the world economy is expected to remain healthy, China and India are expected to drive growth in Asia and the aggressive policies of the Federal Reserve with regard to the sub-prime mortgage market in the US would likely contain the credit squeeze in the US,' said NTU Associate Professor Joseph Alba.
Based on leading indicators for the electronics cluster, the upturn in global electronics demand will likely gather pace in 2008, while construction activity amid buoyant property prices and spillover effects from the building of the two integrated resorts here will provide further stimulus, he added.
The forecasts were made barring additional risks in the Middle East that could cause oil prices to spike further, but assumed high oil prices of US$80 a barrel.
Assoc Prof Choy Keen Meng, who has been spearheading the macro-economic forecasts since 2001, said the impact of oil price spikes on economic growth is not discernable as there are offsetting factors.
'Historically, the impact of oil price increases on the Singapore economy has been ambiguous,' said Assoc Prof Choy.
For the fourth quarter of this year, EMU expects Singapore's economy to grow 8.6 per cent after the government's advance estimates showed the economy growing 9.4 per cent in Q3.
Giving a sectoral breakdown, Assoc Prof Alba said growth in manufacturing, hotels and restaurants, transport and storage and information and communications is expected to accelerate in 2008 from 2007. But sectors like construction and financial services could see slightly slower growth in 2008 given the high base of comparison in 2007.
EMU also projects that one-off impact of the two percentage-point hike in the Goods and Services Tax will likely blow over by 2008, with the Consumer Price Index (CPI) to be 2.6 per cent in Q4, 1.6 per cent for the whole year and 2.4 per cent in 2008.
This falls within the official CPI forecast by the Monetary Authority of Singapore of 1.5-2 per cent for 2007 and 2-3 per cent for 2008.
The buoyant economic outlook is expected to put more pressure on inflation as labour costs increase, EMU said, but added that these wage pressures may moderate in 2008 as productivity growth accelerates or employment is allowed to grow through Singapore's flexible foreign labour policy.
It estimates that job creation will reach a record of 200,000 this year, after an all-time high of 176,000 last year. EMU's projected job creation would take the unemployment rate to 2.3 per cent for 2007 and 2 per cent for 2008 - the lowest level in a decade.
Economy's solid growth to spill into 2008: NTU
It cites uptick in world electronics demand, sizzling construction activity
By LYNETTE KHOO
THANKS to the sustained health of the global economy, an uptick in world electronics demand and sizzling construction activity here, the rosy picture for Singapore's economy will persist into next year, Nanyang Technological University economists said yesterday.
Singapore's gross domestic product is expected to grow 8.3 per cent this year and 7.5 per cent in 2008, the Econometric Modelling Unit (EMU) of the Economic Growth Centre at NTU said in its bi-annual forecast for the economy.'
The expected growth in 2008 is due to external demand conditions, mainly the world economy is expected to remain healthy, China and India are expected to drive growth in Asia and the aggressive policies of the Federal Reserve with regard to the sub-prime mortgage market in the US would likely contain the credit squeeze in the US,' said NTU Associate Professor Joseph Alba.
Based on leading indicators for the electronics cluster, the upturn in global electronics demand will likely gather pace in 2008, while construction activity amid buoyant property prices and spillover effects from the building of the two integrated resorts here will provide further stimulus, he added.
The forecasts were made barring additional risks in the Middle East that could cause oil prices to spike further, but assumed high oil prices of US$80 a barrel.
Assoc Prof Choy Keen Meng, who has been spearheading the macro-economic forecasts since 2001, said the impact of oil price spikes on economic growth is not discernable as there are offsetting factors.
'Historically, the impact of oil price increases on the Singapore economy has been ambiguous,' said Assoc Prof Choy.
For the fourth quarter of this year, EMU expects Singapore's economy to grow 8.6 per cent after the government's advance estimates showed the economy growing 9.4 per cent in Q3.
Giving a sectoral breakdown, Assoc Prof Alba said growth in manufacturing, hotels and restaurants, transport and storage and information and communications is expected to accelerate in 2008 from 2007. But sectors like construction and financial services could see slightly slower growth in 2008 given the high base of comparison in 2007.
EMU also projects that one-off impact of the two percentage-point hike in the Goods and Services Tax will likely blow over by 2008, with the Consumer Price Index (CPI) to be 2.6 per cent in Q4, 1.6 per cent for the whole year and 2.4 per cent in 2008.
This falls within the official CPI forecast by the Monetary Authority of Singapore of 1.5-2 per cent for 2007 and 2-3 per cent for 2008.
The buoyant economic outlook is expected to put more pressure on inflation as labour costs increase, EMU said, but added that these wage pressures may moderate in 2008 as productivity growth accelerates or employment is allowed to grow through Singapore's flexible foreign labour policy.
It estimates that job creation will reach a record of 200,000 this year, after an all-time high of 176,000 last year. EMU's projected job creation would take the unemployment rate to 2.3 per cent for 2007 and 2 per cent for 2008 - the lowest level in a decade.
Business Times: MAS ups pace of Sing $ appreciation, citing price pressures
MAS ups pace of Sing $ appreciation, citing price pressuresCurrency hits 10-year-high against US$ as news of new stance trickles in
By LARRY WEE
(SINGAPORE) The Monetary Authority of Singapore (MAS) surprised currency markets with a decision to ‘increase slightly’ the pace of annual appreciation for the trade-weighted Singapore dollar in its semi-annual Monetary Policy Statement yesterday - while keeping unchanged its overall stance of a modest and gradual appreciation.
Explaining the decision, MAS in a statement said: ‘Domestic price pressures are expected to persist due to heightened supply constraints, while externally, oil, food and other commodity prices will remain firm into next year.’
A stronger currency would help contain price increases by lowering the cost of imports.
Traders reported that the US dollar slid to a fresh 10-year low of S$1.4620 when the news of MAS’ stance hit the market at the start of currency trading yesterday morning, but it was able to make a slight comeback thereafter to end the day at S$1.4645 - possibly aided by some intervention, traders speculated.
That said, the news also prompted currency strategists to lower their end-2007 and 2008 forecasts for the US dollar yesterday.
In its latest statement yesterday, MAS raised its inflation forecast for 2008 to 2-3 per cent, with the recent Goods and Services Tax (GST) hike expected to raise headline consumer price inflation (CPI) to 3.5 per cent in the first half of 2008. This is up from the 1.5-2 per cent inflation pace that MAS now expects for the local economy in 2007 as a whole - which in turn was raised from the more modest 0.5-1.5 per cent rise in prices predicted in its April 2007 statement.
For overall GDP growth, the republic is also expected to out-do April’s 4.5-6.5 per cent forecast, to grow at the upper end of a revised 7-8 per cent pace this year.
In announcing its decision yesterday, MAS revealed that besides upping its appreciation pace slightly, there would be no re-centring of its policy band, or its width - both of which are undisclosed by the local central bank.
Since the early 1980s, the local central bank has fine-tuned the value of the S$NEER as the main tool of its monetary policy, given the very open nature of the local economy.
Private sector models have estimated that since MAS first implemented its current stance for a modest and gradual appreciation of the S$NEER in April 2004, this has translated into an annual appreciation pace of something like 1.5-2.5 per cent per annum, within plus/minus bands of up to 2.5 per cent around its changing central value.
With MAS’ decision to ‘increase slightly the slope of the S$NEER policy band’ announced yesterday, that annual appreciation pace of 1.5-2.5 per cent could now have been raised to something like 2-3 per cent, suggest MAS watchers here.
Jimmy Koh, head of economic and treasury research at UOB, suggests an appreciation pace of 2.5 per cent into 2008, while JPMorgan’s head of Asia forex research Claudio Piron estimates the pace has risen now from 2.25 to 2.75 per cent per annum.
And, suggested OCBC currency strategist Emmanuel Ng yesterday: ‘Our initial take is that the slope steepening, as opposed to the other alternative of re-centring the band higher at pre-announcement levels, represents a more hawkish policy signal. Over the medium term, this suggests greater latitude for S$NEER appreciation if the need so arises compared to a band re-centring.’
Mr Koh explained his upward-revised 2.5 per cent appreciation pace for the S$NEER based on MAS’ higher inflation forecast: ‘If inflation is now expected to rise 2-3 per cent in 2008, this would seem to suggest that the S$NEER appreciation path will also increase from the previous estimate of 2 per cent to 2.5 per cent or so.’
He has accordingly revised his year-end targets for the US dollar lower this year and next - to S$1.47 and S$1.44 respectively, compared to S$1.48 and S$1.46 before MAS announcement yesterday.
He explained: ‘It appears to us that China may have also upped its appreciation pace for the yuan more recently, to something like 5-7 per cent per annum, and we expect Asian units to become more willing to take over the bigger share of appreciation versus the US dollar in 2008 - taking over from 2007’s top gainers like the euro, Australian dollar and Canadian dollar.’
Mr Piron, who estimates a slightly faster pace of 2.75 per cent, now expects the US currency to finish the year at S$1.46, down from S$1.48 before the MAS decision.
But, he cautioned that this may not have any large impact in the short-term: ‘Note that an additional half-a-per-cent increase in the slope translates into an additional 0.13 basis points per day on a 360 day count basis.
‘Indeed, the MAS is suspected by some participants to have slowed Sing appreciation this morning near the USD/SGD 1.4640-50 level, which according to our MAS S$NEER reading at the time was 130 basis points on the strong side of the policy band and close to (our estimated) 150 basis point upper limit.’
By LARRY WEE
(SINGAPORE) The Monetary Authority of Singapore (MAS) surprised currency markets with a decision to ‘increase slightly’ the pace of annual appreciation for the trade-weighted Singapore dollar in its semi-annual Monetary Policy Statement yesterday - while keeping unchanged its overall stance of a modest and gradual appreciation.
Explaining the decision, MAS in a statement said: ‘Domestic price pressures are expected to persist due to heightened supply constraints, while externally, oil, food and other commodity prices will remain firm into next year.’
A stronger currency would help contain price increases by lowering the cost of imports.
Traders reported that the US dollar slid to a fresh 10-year low of S$1.4620 when the news of MAS’ stance hit the market at the start of currency trading yesterday morning, but it was able to make a slight comeback thereafter to end the day at S$1.4645 - possibly aided by some intervention, traders speculated.
That said, the news also prompted currency strategists to lower their end-2007 and 2008 forecasts for the US dollar yesterday.
In its latest statement yesterday, MAS raised its inflation forecast for 2008 to 2-3 per cent, with the recent Goods and Services Tax (GST) hike expected to raise headline consumer price inflation (CPI) to 3.5 per cent in the first half of 2008. This is up from the 1.5-2 per cent inflation pace that MAS now expects for the local economy in 2007 as a whole - which in turn was raised from the more modest 0.5-1.5 per cent rise in prices predicted in its April 2007 statement.
For overall GDP growth, the republic is also expected to out-do April’s 4.5-6.5 per cent forecast, to grow at the upper end of a revised 7-8 per cent pace this year.
In announcing its decision yesterday, MAS revealed that besides upping its appreciation pace slightly, there would be no re-centring of its policy band, or its width - both of which are undisclosed by the local central bank.
Since the early 1980s, the local central bank has fine-tuned the value of the S$NEER as the main tool of its monetary policy, given the very open nature of the local economy.
Private sector models have estimated that since MAS first implemented its current stance for a modest and gradual appreciation of the S$NEER in April 2004, this has translated into an annual appreciation pace of something like 1.5-2.5 per cent per annum, within plus/minus bands of up to 2.5 per cent around its changing central value.
With MAS’ decision to ‘increase slightly the slope of the S$NEER policy band’ announced yesterday, that annual appreciation pace of 1.5-2.5 per cent could now have been raised to something like 2-3 per cent, suggest MAS watchers here.
Jimmy Koh, head of economic and treasury research at UOB, suggests an appreciation pace of 2.5 per cent into 2008, while JPMorgan’s head of Asia forex research Claudio Piron estimates the pace has risen now from 2.25 to 2.75 per cent per annum.
And, suggested OCBC currency strategist Emmanuel Ng yesterday: ‘Our initial take is that the slope steepening, as opposed to the other alternative of re-centring the band higher at pre-announcement levels, represents a more hawkish policy signal. Over the medium term, this suggests greater latitude for S$NEER appreciation if the need so arises compared to a band re-centring.’
Mr Koh explained his upward-revised 2.5 per cent appreciation pace for the S$NEER based on MAS’ higher inflation forecast: ‘If inflation is now expected to rise 2-3 per cent in 2008, this would seem to suggest that the S$NEER appreciation path will also increase from the previous estimate of 2 per cent to 2.5 per cent or so.’
He has accordingly revised his year-end targets for the US dollar lower this year and next - to S$1.47 and S$1.44 respectively, compared to S$1.48 and S$1.46 before MAS announcement yesterday.
He explained: ‘It appears to us that China may have also upped its appreciation pace for the yuan more recently, to something like 5-7 per cent per annum, and we expect Asian units to become more willing to take over the bigger share of appreciation versus the US dollar in 2008 - taking over from 2007’s top gainers like the euro, Australian dollar and Canadian dollar.’
Mr Piron, who estimates a slightly faster pace of 2.75 per cent, now expects the US currency to finish the year at S$1.46, down from S$1.48 before the MAS decision.
But, he cautioned that this may not have any large impact in the short-term: ‘Note that an additional half-a-per-cent increase in the slope translates into an additional 0.13 basis points per day on a 360 day count basis.
‘Indeed, the MAS is suspected by some participants to have slowed Sing appreciation this morning near the USD/SGD 1.4640-50 level, which according to our MAS S$NEER reading at the time was 130 basis points on the strong side of the policy band and close to (our estimated) 150 basis point upper limit.’
Business Times: Wealthy group growing fastest in S'pore
October 17, 2007
Wealthy group growing fastest in S'pore
By VIKRAM KHANNA IN SEOUL
SINGAPORE is home to the fastest-growing population of high net worth individuals (HNWIs) in the Asia-Pacific, according to a report by Merrill Lynch and Capgemini.
The 2007 Asia Pacific Wealth Report - released yesterday at the World Knowledge Forum, organised by the Maeil business newspaper, in Seoul - shows the number of HNWIs in Singapore rose 21.2 per cent last year to about 67,000.
India and Indonesia were the second and third-fastest growing markets for HNWIs, at 20.5 and 16 per cent respectively.
Overall, the number of HNWIs in the Asia-Pacific region grew 8.5 per cent this year to about 2.6 million.
Of the world's 10 fastest-growing HNWI markets last year, five were in the Asia-Pacific - Singapore, India, Indonesia, South Korea and Hong Kong.
HNWIs are defined as people with more than US$1 million in financial holdings excluding their primary residence. The report estimates overall HNWI wealth was about US$8.42 trillion at the end of last year.
In terms of the distribution of this wealth by market, Japan was the clear leader, accounting for 44 per cent or US$3.7 trillion, followed by China with 21 per cent or US$1.7 trillion. Singapore was the sixth-largest market, with HNWI wealth totalling US$320 billion last year.
Looking ahead, the report projects that Asia-Pacific HNWI wealth will grow about 8 per cent a year for the next three years to a staggering US$12.7 trillion by 2011.
In terms of investment behaviour, Asia-Pacific HNWI investors show certain characteristics, according to the report. In particular, they tend to prefer tangible assets - real estate and cash - to other investment classes.
They also invest most of their assets in the region. For instance, Singapore HNWIs allocated 52 per cent to the Asia-Pacific. However, in the future, Merrill Lynch and Capgemini reckon Asian HNWI investors will seek greater diversification, both by geography and investment classes.
Specifically, they foresee HNWIs seeking to invest in markets outside Asia and North America, and allocating a greater proportion of their wealth to fixed income and alternative investments such as structured products, private equity and hedge funds, as well as 'passion investments' such as wine and art.
Wealthy group growing fastest in S'pore
By VIKRAM KHANNA IN SEOUL
SINGAPORE is home to the fastest-growing population of high net worth individuals (HNWIs) in the Asia-Pacific, according to a report by Merrill Lynch and Capgemini.
The 2007 Asia Pacific Wealth Report - released yesterday at the World Knowledge Forum, organised by the Maeil business newspaper, in Seoul - shows the number of HNWIs in Singapore rose 21.2 per cent last year to about 67,000.
India and Indonesia were the second and third-fastest growing markets for HNWIs, at 20.5 and 16 per cent respectively.
Overall, the number of HNWIs in the Asia-Pacific region grew 8.5 per cent this year to about 2.6 million.
Of the world's 10 fastest-growing HNWI markets last year, five were in the Asia-Pacific - Singapore, India, Indonesia, South Korea and Hong Kong.
HNWIs are defined as people with more than US$1 million in financial holdings excluding their primary residence. The report estimates overall HNWI wealth was about US$8.42 trillion at the end of last year.
In terms of the distribution of this wealth by market, Japan was the clear leader, accounting for 44 per cent or US$3.7 trillion, followed by China with 21 per cent or US$1.7 trillion. Singapore was the sixth-largest market, with HNWI wealth totalling US$320 billion last year.
Looking ahead, the report projects that Asia-Pacific HNWI wealth will grow about 8 per cent a year for the next three years to a staggering US$12.7 trillion by 2011.
In terms of investment behaviour, Asia-Pacific HNWI investors show certain characteristics, according to the report. In particular, they tend to prefer tangible assets - real estate and cash - to other investment classes.
They also invest most of their assets in the region. For instance, Singapore HNWIs allocated 52 per cent to the Asia-Pacific. However, in the future, Merrill Lynch and Capgemini reckon Asian HNWI investors will seek greater diversification, both by geography and investment classes.
Specifically, they foresee HNWIs seeking to invest in markets outside Asia and North America, and allocating a greater proportion of their wealth to fixed income and alternative investments such as structured products, private equity and hedge funds, as well as 'passion investments' such as wine and art.
Thursday, October 18, 2007
District 21 - Jardin
JARDIN
LAUNCHING SOON (at preview prices!!)
For Preview Prices .. Call 9816 2825 now !!
Jardin (pronounced as "Jar-done")
Located at Bukit Timah / Dunearn Road. (In front of GardenVista).
Freehold / TOP 2013
Alternate Floors (1,3,5,7, etc ...) facing common garden (loft units.
Total : 140 units (90 loft units / 50 single storey units)
Maintenance (Approximate)
- 2 Bedrooms - $378
- 3 Bedrooms - $441
- 4 Bedrooms - $504
Interior Furnishings
- Marble Flooring : 600 X 600. Choice of white or beige color.
- Timber Flooring : Choice of light or dark brown.
Additional Info.
- 50m lap pool & wading pool on 11th storey.
- 4 room units are 40m away from main road.
- single storey units are 30m away from main road.
Features:·
- Refreshing “French-garden” Concept·
- Central location; near to top schools·
- Sky Garden on alternate levels·
- Recreation facilities located on roof-top·
- Private lift at all loft units
Nearby MRT Station:·
- Buona Vista MRT Station·
- Clementi MRT Station·
- Dover MRT Station
Nearby Shopping Centres:·
- Bukit Timah Plaza·
- Beauty World Plaza·
- Beauty World Centre·
- Bukit Timah Shopping Centre·
- Turf City
Nearby Schools / Institutions: ·
- Pei Hwa Presbyterian Primary School·
- Ngee Ann Polytechnic·
- Methodist Girls' School (Secondary)·
- Dutch Schools (Holland School)·
- Marketing Institution of Singapore
- S$1900 psf for single storey
- S$2200 psf for loft units
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