BT : Office rents edge up 0.4% in Q1

Business Times - 24 Apr 2010

Office rents edge up 0.4% in Q1

By EMILYN YAP

THE recent buzz in the commercial leasing market has finally translated into higher rents. But market watchers remain guarded, noting the additional space coming on stream in the next few years. According to the Urban Redevelopment Authority (URA) yesterday, office rents based on commenced leases edged up 0.4 per cent in Q1 this year from the preceding quarter, reversing a 3.3 per cent drop that quarter from the one before. The rise in Q1 marked the end of a six-quarter fall that began in Q2 2008 as the global financial crisis unfolded.

Prices of office properties also rose in Q1, by 1.8 per cent quarter on quarter, compared with one per cent in Q4 2009.

The office market stayed quiet until the second half of 2009, when tenants began a game of musical chairs and moved from older to newer buildings. As the economy outperformed expectations in recent months, some companies started to plan for expansion and signed on for more space. Early this month, for instance, Barclays Capital more than tripled its space commitment at Marina Bay Financial Centre (MBFC) Tower 2. Due to such activity, Q1's increase in rents is 'not a surprise', said Savills Singapore commercial leasing director Agnes Tay. Since January, rents at some buildings - particularly those with good occupancy rates - have been firming, she said.

The median monthly rent for Category 2 office space - which accounts for about 80 per cent of all commercial stock in Singapore - moved up slightly to $4.71 per square foot in Q1, from $4.69 psf in Q4 2009. But the median monthly rent for Category 1 office space slid to $8.25 psf from $8.76 psf over the same period.

Meanwhile, the island-wide office vacancy rate rose to 12.5 per cent in Q1 from 12.1 per cent the quarter before. The completion of 630,770 sq ft of office space at MBFC Tower 1 probably contributed to this, said CBRE Research executive director Li Hiaw Ho. He expects the vacancy rate increase to be transitional as the first phase of MBFC is almost fully leased. He noted that office take-up in Q1 was 236,808 sq ft, remaining in positive territory but less than the 301,392 sq ft in Q4.

According to URA, 1.02 million sq m of office space was in the pipeline at end-Q1. Of this, about 931,000 sq m of space will be completed between Q2 this year and 2013. In the same period, around 365,000 sq m of business park space will also be ready. The upcoming supply has capped consultants' expectations about rent increases in the next few quarters.

Said Mr Li: 'While there are compelling signs that rents have stabilised, an early return to rental growth might still be premature.'

New space supply, plus 'a substantial amount of secondary supply from tenants relocating to new mega- schemes, might limit rental recovery until next year'.

Things are also looking up for the industrial property sector. Rents grew 1.7 per cent in Q1 from the quarter before, and prices edged up 1.5 per cent. Shop space rents fell 0.1 per cent in Q1, but prices increased 1.8 per cent.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : Private home prices up more than expected

Business Times - 24 Apr 2010

Private home prices up more than expected

Much of Q1 price growth originates from landed property

By EMILYN YAP

PRIVATE home prices rose more than expected in the first quarter of 2010, with landed properties putting up a strong showing. Rents also climbed surprisingly, leading to greater optimism in the market.

Data from the Urban Redevelopment Authority yesterday showed that private residences were 5.6 per cent more expensive compared with a quarter ago. This exceeds the flash estimate of 5.1 per cent released earlier this month.

Still, the Q1 increase is smaller than the 7.4 per cent hike in Q4 last year, which spurred the government into introducing more measures to rein in sentiments in the housing market.

Sub-sale activity - a signal of speculation - also dipped in Q1. Sub-sales accounted for 8.5 per cent of all sale transactions, down from 11.6 per cent in Q4.

The cooling measures have been 'effective in keeping short-term speculators at bay' and have 'helped to take some pressure off prices', said Colliers International research and advisory director Tay Huey Ying.

Price resistance has also set in, since home prices have exceeded the lows in Q2 last year by more than 30 per cent, she added.

Much of price growth in Q1 originated from landed property. Prices in that segment went up by 8.3 per cent, at the same rate as in Q4.

Prices rose most for detached houses, by 9.6 per cent. Prices for semi-detached and terrace houses followed with 7.5 per cent and 7.4 per cent increases respectively.

Demand for landed property has been high and there have been many transactions, said RealStar Premier Property managing director William Wong. Such houses can have lower per square foot (psf) prices compared with condominium units and that could have attracted buyers, he suggested.

Colliers' Ms Tay added that the supply of landed property has always been limited, so this would provide a support to prices.

Despite the strong growth, landed property prices have yet to breach the historical high seen more than 10 years ago. The price index for this segment in Q1 was 176.3, about 9 per cent below the 193.4 in Q2 1996.

Over in the non-landed home segment, prices grew by 4.9 per cent in Q1, at a slower pace compared with 7.2 per cent in Q4.

Residences in the Rest of Central Region (RCR) led the increase, with prices going up by 7.9 per cent. Prices in the Core Central Region (CCR) and Outside Central Region (OCR) rose 4.4 per cent and 4.3 per cent respectively.

Consultants are optimistic about how private home prices and sales volume will fare this year. CBRE Research executive director Li Hiaw Ho pointed to the sharp economic growth in Q1, saying this 'makes for much positive market sentiment in the coming months'.

Developers managed to sell 4,380 new homes in Q1, more than twice the 1,860 in Q4, he said. 'If the pace of sales continues throughout the year, the total sales of new homes could even be comparable to last year's volume of 14,688 units.'

Property launches this month continue to prove hot. City Developments said yesterday that at Tree House, its latest project at Chestnut Avenue, over 85 per cent of the 350 units rolled out have been taken up. Prices were around $800 psf, and buyers snapped up all two-bedroom and two-bedroom-plus-study units.

More launches are set to come. For instance, Frasers Centrepoint plans to launch the former Flamingo Valley site in early May.

In terms of prices, Colliers' Ms Tay expects further increases ahead. They could breach the peaks in Q2 2008 and Q2 1996 by the next quarter, given they are just 1.4 per cent and 3.5 per cent below those highs respectively, she said.

Also, 'future price appreciation looks likely to be supported by a corresponding rise in rents', she said.

In Q1, rents of private homes increased by 4.7 per cent quarter on quarter, up from 0.6 per cent in Q4. Going by regions, across CCR, RCR and OCR, rents grew 5.3 per cent, 4 per cent and 4.8 per cent respectively.

Ms Tay believes rents could climb further - leading to a 10-15 per cent rise for the whole of 2010 - as companies reactivate hiring plans and more expatriates arrive on Singapore's shores.

CBRE Research's Mr Li suggested that residential rents could have bottomed out. 'Anecdotal evidence suggests an increase in the hiring of expatriate staff in the financial services and bio-medical sectors as economic fundamentals improve which in turn, have translated to the increase in rents,' he said.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



SNAPPED UP
At Tree House, City Developments' latest project at Chestnut Avenue, over 85 per cent of the 350 units rolled out have been taken up, at prices of around $800 per square foot.

BT : HDB resale market appears to be stabilising: analysts

Business Times - 24 Apr 2010

HDB resale market appears to be stabilising: analysts

HDB's demand-side and supply-side measures begin to have cooling effect

By UMA SHANKARI

THE HDB resale market appears to be stabilising, judging by the latest data from the Housing & Development Board.

Figures released yesterday show HDB resale prices gained 2.8 per cent quarter on quarter in Q1 this year - slightly more than an earlier flash estimate that suggested a 2.7 per cent increase. The rise lifted the index to an all-time high, but it was slower than the increases of 3.9 per cent in Q4 2009 and 3.6 per cent in Q3 that year.

The number of HDB resale transactions fell 5 per cent to 8,484 deals in Q1 this year, from 8,926 cases in Q4 2009. And the median cash-over-valuation (COV) sum rose by just $1,000 to $25,000.

All of this suggests a stabilisation in prices, analysts say.

'It shows that HDB's two-pronged approach - implementing demand and supply-side measures - is beginning to have a cooling effect on the sizzling resale market,' said Eugene Lim, associate director of ERA Asia-Pacific.

In early March, the government introduced demand-side measures to hurt speculators. The time that buyers are required to stay in HDB flats before reselling them - minimum occupation period or MOP - was extended to three years, from one or 2.5 years, for all HDB flats bought in the resale market. And the loan-to-value limit on housing loans was also reduced from 90 to 80 per cent.

On the supply side, HDB has been pushing out new flats at a fast clip since the start of the year. About 5,100 new build-to-order (BTO) flats were launched from January to April. HDB plans to launch about 12,300 new BTO flats by September this year and will launch even more projects in Q4 if demand is sustained.

PropNex chief executive Mohamed Ismail said market tolerance is being reached as the government continues to push out new BTO flats.

ERA's Mr Lim said: 'The number of new BTO flats to be launched this year in various locations - supplemented by upcoming DBSS (design, build and sell scheme) and executive condominium projects - is expected to take some steam out of the resale market. It makes more sense for eligible Singapore-citizen households that do not have immediate housing needs to buy these projects instead of resale flats, as more than 90 per cent of resale transactions involve COV.'

Because of this, COV values are expected to stay at current levels. Analysts had previously said high COV values were pushing up the resale price index over the past few quarters.

In Q1 2010, three-room and four-room flat transactions - which accounted for 67 per cent of all resale transactions - fetched median COVs of $22,000 and $25,000 respectively. And five-room and executive flats were transacted at median COVs of $28,000 and $30,000 respectively. Resale flats in Bishan attracted the highest median COV of $32,000, followed by those in Punggol at $31,000.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

ST : Circle Line: No plan to go full circle yet

Apr 23, 2010

Circle Line: No plan to go full circle yet

Govt to assess ridership before deciding on 4km 'missing link' in route

By Christopher Tan

THE name 'Circle Line' is a bit of a misnomer.

Even when all 29 stations along its 33km route are in use by some time next year, it will not be a full circle: A gap of about 4km long will still separate the HarbourFront and Marina Bay stations.

The Ministry of Transport has not ruled out closing this 'missing link', but is now taking a 'wait and see' approach. It said: 'We have to assess whether there's sufficient ridership to justify such a direct linkage, as there are already alternatives now through the current rail network.'

It will continue monitoring the situation, it added.

Dr Lim Wee Kiak, who chairs the Government Parliamentary Committee for Transport, said he believes closing the loop would 'make sense' and is glad the Government is not dismissing the option.

'Commuters will then be able to travel clockwise or anti-clockwise, and trains don't have to make a U-turn to go the other way,' he pointed out.

Circle Line operator SMRT Corp agrees.

SMRT president Saw Phaik Hwa, noting also that a loop service will mean a quicker turnaround for the trains, said: 'We welcome rail extensions that bring greater accessibility to commuters.'

Making the Circle Line go full circle will particularly benefit commuters now in the south-west. Those living in West Coast, Pasir Panjang and Telok Blangah will be able to get to the Marina downtown area in one train ride, as opposed to transferring to the North-East Line at HarbourFront, heading north to Dhoby Ghaut and then south again to Marina.

Closing the loop will also get these commuters more quickly to and from Suntec City, Beach Road, the National Stadium and the Old Airport Road hawker centre without needing to switch lines.

Telok Blangah resident Hwang Jeng Ming, 30, has realised this.

The maritime executive said that closing the loop will give people like him a direct route to Marina and farther east without having to change to another train.

If the extension is built, it will not be the first. In 2005, the Government announced that the Circle Line would be extended to the Marina downtown, where the Marina Bay Sands integrated resort and other commercial and leisure developments are sited.

Transport researcher Lee Der Horng of the National University of Singapore (NUS) has asked his students to assess the merits of closing the loop.

Their conclusion? It should be done, in view of the proposed redevelopment of Tanjong Pagar port into a new downtown area the size of Marina Bay, which sits where the gap in the line now is.

The provision of a rapid transit system is crucial to the redevelopment of the area, said Dr Lee. He added: 'My view is that we should adopt a 'transit-oriented development' approach.' The term refers to building an urban development around a highly efficient transit system that is within walking distance for those who live, work or play in it.

But Associate Professor Anthony Chin, who specialises in transport economics at NUS, warned that bridging the Circle Line's 'missing link' should be weighed against other considerations.

Closing the loop will have several benefits to a group of commuters, he agreed, but pointed out: 'Like all transport infrastructure projects, the central issue is economic and financial viability. So until the port moves out and enough density is created, one will have a hard time justifying it.' The Government must weigh very carefully between addressing more pressing needs versus spending on closing the loop, he added.

The new downtown area proposed for the site where the port now sits was suggested by the Economic Strategies Committee. It suggested that when the port's current lease expires in 2027, it could be re-sited in, say, Tuas.

Construction industry sources estimate that the link - if it is to have four stops - will cost between $1.5 billion and $2 billion at today's cost.

Observers note that the Land Transport Masterplan has indicated that new lines can be built if they do not compromise the viability of the network. So, given that the viability of every individual new line is not a must now, the link could be built sooner rather than later.

The Straits Times understands that the Government has studied another option to closing the loop - by linking HarbourFront to the East-West line's Tanjong Pagar station, and then joining it to Marina Bay.

christan@sph.com.sg


--------------------------------------------------------------------------------

CONVENIENCE FACTOR

'Commuters will then be able to travel clockwise or anti-clockwise, and trains don't have to make a U-turn to go the other way.'

Dr Lim Wee Kiak, chairman of the Government Parliamentary Committee for Transport

ECONOMIC VIABILITY

'Like all transport infrastructure projects, the central issue is economic and financial viability. So until the port moves out and enough density is created, one will have a hard time justifying it.'

Associate Professor Anthony Chin, who specialises in transport economics at NUS



Red-uniformed service ambassadors Elsiu Eu, 53 (left), and Rosnah Arib, 48 (right), guiding passengers on the Circle Line. -- ST PHOTO: JOYCE FANG

ST : People's Park fire started in illegal rooms

Apr 23, 2010

People's Park fire started in illegal rooms

SCDF to act against owner for serious fire safety violation

By Mavis Toh

WEDNESDAY'S fire at People's Park Complex started in some storerooms which had been built illegally at the fifth-floor carpark of the building, preliminary investigations showed.

The owner had not obtained approval from the Singapore Civil Defence Force (SCDF) to convert the area from a carpark to storage rooms.

'This is a serious fire safety violation and SCDF will follow up to take action against the offender,' an SCDF spokesman said yesterday.

The fire at the mall had sent hundreds of tenants and shoppers scurrying out of the building.

While no one was hurt, the fire has raised the spectre of the blaze which gutted the former Robinsons department store at Raffles Place in 1972.

That fire killed nine people and destroyed $21 million worth of property.

While the number of fires at malls and shopping centres here has remained small, fire safety experts told The Straits Times that given the crowds at such places, even a small fire could have catastrophic consequences.

Last year, there were 47 fires at shopping malls, compared to 46 the year before. There were 13 such fires in the first three months of this year.

The SCDF spokesman added that mall fires are dangerous as the malls are frequented by the public and house a large quantity of merchandise which could fuel the flames.

Mr Tan Jin Thong, president of the National Safety Council of Singapore, said: 'People tend to panic and run when there's a fire. If the mall is congested, a stampede could result.'

He added that shoppers who are not familiar with the mall's escape routes could cause further panic and confusion. Escape routes not properly tested could also result in bottlenecks.

Mr David Goh, vice-president of the Fire Safety Managers' Association, said emergency exits and corridors choked with storage items such as cartons and crates could further hinder evacuations.

The experts said most mall fires are a result of overloaded electrical circuits, strewn cigarette butts or naked flames like candles.

Mr Alan Loh, chairman of the National Fire and Civil Emergency Preparedness Council, said that among other things, malls must have a fire safety manager and regular evacuation drills.

'Our fire requirements now are stringent and business operators should comply to ensure we don't have a repeat of the Robinsons fire,' said Mr Tan.

mavistoh@sph.com.sg

ST : China acts tough on 2nd-home buys

Apr 23, 2010

China acts tough on 2nd-home buys

Move part of extra steps to cool market amid bubble worries

By Fiona Chan

CHINA yesterday indicated it would take further steps to cool its red-hot housing market amid growing concerns over asset bubbles emerging in Asia.

Beijing will take a stricter view of whether home buyers are purchasing a second home, Reuters reported, citing the Shanghai Securities News.

Buyers of second homes in China have to pay a higher down payment than those purchasing a first home. Previously, regulators looked only at whether buyers had an outstanding mortgage to determine if their new purchase was a 'second home'.

But Mr Yang Jiacai, a director at the China Banking Regulatory Commission, said yesterday that regulators would now check if the buyer already owned a home, regardless of whether it was fully paid for, according to the report.

He also said Beijing may need to take more steps to dampen the property market, such as tax adjustments, as recent measures may have had only a limited impact.

This comes as the International Monetary Fund (IMF) warned in a recent report that the strong rebound in home prices in some Asian economies may lead to property bubbles.

Average home prices in East Asia have risen more quickly than rents, the IMF said in its latest Global Financial Stability Report. This is a typical characteristic of housing bubbles, in which people buy properties in the hope of making money from them rather than wanting to live in them.

If Asian housing markets keep booming without moderation, they may threaten financial stability as banks will be at risk if a bubble builds and bursts, and home valuations come crashing down.

To be fair, the IMF said, governments in the region have been taking measures to cool their real estate markets. In Singapore, the Government has increased land supply, lowered the maximum loans available for private homes and tightened rules on speculative purchases.

But the full effects of the cooling moves may take a few quarters to be felt, and the authorities may also need to 'fine-tune their policies' to prevent a bubble without stymying the economic recovery, the IMF said.

Other economists and financial industry players have also been raising concerns about emerging Asian property bubbles for months now.

Economists from the United Nations and Asian Development Bank cautioned about asset bubbles as early as last year, while DBS chief executive Piyush Gupta was also quoted in reports last week as saying asset bubbles have already formed in the property markets of Singapore, Hong Kong and mainland China.

At home, analysts are concerned about the effect China's cooling moves may have on Singapore developers with projects in China.

DMG & Partners property analyst Brandon Lee this week downgraded CapitaLand to 'neutral' after its first-quarter results came in below expectations, due to lower-than-anticipated sales in China and Australia.

While CapitaLand's pipeline of about 20,000 homes in China will allow it to benefit in the medium to long term, the near-term outlook is uncertain as Beijing appears to have hardened its stance on curbing property speculation, he said.

Mr Lee also maintained a 'neutral' call on Keppel Land for similar reasons: weaker first-quarter results than expected, as sales in China and Singapore fell below forecast.

'Given its exposure to the Chinese residential market, we think ongoing policy risks will cap any share price upside,' he said.

fiochan@sph.com.sg

ST : Room for bosses, greening experts to improve buildings

Apr 23, 2010

Room for bosses, greening experts to improve buildings

By Lee Yen Nee

SCEPTICAL bosses are preventing experts in 'greening' buildings from playing a key role in efforts to make buildings more ecologically sound, a conference heard yesterday.

Mr Tony Keane told the event that such experts - called facilities management professionals - deserve more recognition as they can help companies to operate more productively while being environment-friendly.

The president and chief executive of the International Facility Management Association (IFMA) later told The Straits Times that such professionals must also realise that they can do more.

'It's an awareness issue for the management... It's also an awareness issue for facilities management professionals that they can truly make a difference and they need to be heard,' he said.

The conference - an inaugural one on sustainable facility management - was organised by the IFMA and the Building and Construction Authority's (BCA) education arm, BCA Academy.

Mr Ng Chin San, managing director of industrial facility management at asset manager UGL Premas, said proper facilities management can add value to businesses.

For example, a more efficient use of energy could reduce operational costs and carbon dioxide emissions.

BCA chief executive John Keung said that it was important to improve energy efficiency, especially in existing buildings as most do not meet the proper standards.

To achieve the target set by the Inter-Ministerial Committee on Sustainable Development to 'green' 80 per cent of buildings here by 2030, Dr Keung suggested letting facilities management professionals lead the effort.

'A large number of old buildings will have to be retrofitted,' he added.

'It is therefore necessary for us to ensure that our professionals have the knowledge and skill sets to lead the effort... in the commissioning, operation and management of the green facilities and the associated technologies.'

With that in mind, the BCA inked a memorandum of understanding with the IFMA to collaborate on promoting and advancing the facility management profession.

Dr Keung said: 'BCA will work with IFMA to develop more programmes to train our local professionals to operate and manage the increasing number of sustainable developments efficiently and cost-effectively.'



Having green buildings such as this means a more efficient use of energy, which could reduce operational costs and carbon dioxide emissions. -- ST FILE PHOTO

BT Letters : MinLaw's response on MC, SC not satisfactory for owners

Business Times - 23 Apr 2010

LETTER TO THE EDITOR
MinLaw's response on MC, SC not satisfactory for owners

I REFER to the response of the Ministry of Law (MinLaw) titled 'Residents have power to deal with MC members' (BT, April 21) to a letter by Florence Tan titled 'Keep members of MC, sales committee distinct' (BT, April 15) .

First, it is surprising that MinLaw should state that 'if residents are unhappy with the performance of council members, they can consider removing the council members concerned by way of an ordinary resolution at a general meeting on grounds of neglect of duty'.

My understanding has always been that only unit-owners, or 'subsidiary proprietors' (SPs), and not 'residents', have that power, although they may of course delegate such authority to their duly appointed proxies at general meetings.

MinLaw's hypothesis that 'separate members for the MC (management committee) and SC (sales committee) may not be very practical for smaller estates if insufficient persons come forward to form two separate committees' also seems arbitrary, as it fails to give any guide as to where the dividing line between 'smaller' and 'bigger' estates is.

According to our estate's experience, just one person is sufficient to act as MC of an estate, while three are required to set up a Collective Sale Committee. Does MinLaw contend these small numbers cannot be met even in the smallest estates?

Also, apparently, there is no provision in the present rules to compel Collective Sale Committees to provide periodical 'progress reports' (even if nil) to be made known to affected owners. Why not, when millions of dollars could be involved?

Against such a background, Ms Tan's reservations on the propriety of a perceptible conflict of interest between MCs and Sales Committees would seem valid enough.

MinLaw's easy dismissal of the issue is unlikely to satisfy owners who are opposed to the sale of their homes.

Narayana Narayana

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : 26% jump in FCOT's Q2 net property income

Business Times - 23 Apr 2010

26% jump in FCOT's Q2 net property income

By EMILYN YAP

FRASERS Commercial Trust (FCOT) yesterday posted a net property income of $23.6 million for the second quarter ended March 31 - up 26 per cent from a year ago.

This helped boost total distributable income, which rose 167 per cent over the same period to $14.5 million. Of this, unitholders' share was $9.8 million, while holders of Series A convertible perpetual preferred units (CPPU) got a share of $4.6 million.

'The contribution from Alexandra Technopark together with better performance of the Australian properties and lower financing costs contributed to the increase in distribution income,' said CEO of FCOT's manager, Low Chee Wah.

FCOT bought Alexandra Technopark in August last year and the property contributed to earnings for the full second quarter. From Down Under, Central Park and Caroline Chisholm Centre brought in more revenue largely as the Australian dollar strengthened.

Distribution per unit (DPU) was 0.32 cents in Q2. This is 56 per cent less than the 0.72 cents a year ago, as the unit base grew from a rights issue in August last year.

Adjusting for the cash call, DPU in Q2 2009 would have been 18 cents, translating to a 78 per cent year-on-year increase.

Distribution per CPPU in Q2 was 1.36 cents.

For the first half ended March 31, FCOT's net property income was $47.1 million, rising 27 per cent from a year ago. Total distribution available surged 81 per cent to $26.6 million.

DPU in H1 was 0.56 cents, while distribution per CPPU was 2.74 cents. These distributions will be paid out on May 27.

As at March 31, FCOT's portfolio had a value of some $1.9 billion. The average occupancy rate was 92.4 per cent, down from 92.9 per cent as at Dec 31 last year.

The trust's gearing as at March 31 was 40.1 per cent, dropping slightly from 40.4 per cent a quarter ago.

FCOT lost half a cent yesterday to close at 14 cents.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



Boost: Central Park (above) and Caroline Chisholm Centre brought in more revenue as the A$ strengthened

BT : Lion Teck Chiang to soft launch cluster housing

Business Times - 23 Apr 2010

Lion Teck Chiang to soft launch cluster housing

By VEN SREENIVASAN

MAINBOARD-LISTED Lion Teck Chiang is soft-launching its freehold cluster bungalow project at Crescent Road in District 15 this weekend.

The $70 million project, called Seven Crescent, comprises 14 bungalows that share common facilities, such as a pool and playgrounds, on a 33,135 sq ft site. At $4.6 million to $5 million each unit, the four-bedroom homes, which range from 4,618 to 5,177 sq ft, are selling at an average price of $1,000 to $1,200 psf. Industry observers reckon these prices are keen enough to attract good interest, given the development is in a mature neighbourhood just off Mountbatten and Meyer roads. It is unclear how much the project will contribute to Lion Teck Chiang's bottom line, but it bought the land for $28.5 million a couple of years ago.

Although largely a steel player, Lion Teck Chiang has gradually built up a reputation as a boutique developer in the bungalow segment. While it has built and sold such homes in various parts of District 15 over the years, this is its first cluster bungalow project. Its other property projects include apartments in various prime locations around Singapore and mass market developments in the Klang Valley near Kuala Lumpur.

Following the soft launch this weekend, Lion Teck Chiang will put any unsold bungalows on the market for sale next week. The project, designed by MKPL Architects, is being marketed by DTZ.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



$70 million project: The District 15 development comprises 14 bungalows that share common facilities, such as a pool and playgrounds

BT : Robertson Quay hotel site open for application

Business Times - 23 Apr 2010

Robertson Quay hotel site open for application

Plot, which can yield some 350 rooms, has access to S'pore River promenade

By EMILYN YAP

DEVELOPERS looking to grab a slice of the hospitality pie can now apply for a hotel site at Robertson Quay.

The Urban Redevelopment Authority (URA) released detailed sale conditions for the 99-year leasehold plot yesterday. The 0.45 hectare site can yield an estimated 350 hotel rooms.

It has direct access to the Singapore River promenade and is next to Rivergate. It is near several other hotels such as Grand Copthorne Waterfront Hotel, River View Hotel, Gallery Hotel and Studio M Hotel.

It is also within walking distance of food and beverage and entertainment outlets at Robertson Quay, Clarke Quay and Boat Quay.

CBRE Hotels Asia-Pacific executive director Robert McIntosh expects to see demand for the site, which may house a four or five-star hotel. The location 'is pretty attractive,' he said.

It helps that the outlook for the hospitality sector has improved. 'There is much more positive sentiment than there was six to nine months ago,' Mr McIntosh said.

Singapore attracted 857,000 visitors in February - a 24.2 per cent increase from a year ago. This helped lift gazetted room revenue for hotels 5.8 per cent year on year to $133 million.

Transaction volume in the hotel investment market also surged in the first quarter. According to a Jones Lang LaSalle Hotels report last week, Asian investors have shown strong interest in the sector.

Cushman & Wakefield managing director Donald Han agrees there will be demand for the hotel plot. But he suggests the developer may set aside some space for residential units. 'The residential play will be interesting,' he said.

Under zoning guidelines, developers can use up to 40 per cent of a hotel site's total floor area for commercial or residential use, subject to official consideration. The Robertson Quay parcel has a maximum gross floor area of 136,013 sq ft.

Mr Han expects developers to offer around $450-$500 per sq ft per plot ratio for the site, and build a three-and-a-half or four-star hotel on it.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

CNA : URA launches tender for commercial site at Stamford Road and North Bridge Road

URA launches tender for commercial site at Stamford Road and North Bridge Road
By Mok Fei Fei | Posted: 21 April 2010 1203 hrs

SINGAPORE: The Urban Redevelopment Authority (URA) is launching a closely-watched commercial site at Stamford Road and North Bridge Road for sale by public tender.

The URA is launching the sale after a developer committed to bid at least S$100 million dollars for the 99-year-leasehold site, which was placed on the Reserve List system.

URA says the land parcel, which is 1.43 hectares in size, is slated for commercial use with a hotel component.

It contains a cluster of three historically and architecturally significant buildings, namely Capitol Theatre, Capitol Building and Stamford House.

As part of the redevelopment, those buildings must be retained and restored for adaptive reuse.

The site will be sold together with a subterranean parcel below North Bridge Road that provides seamless access to the City Hall MRT station.

The maximum permissible gross floor area for the development is close to 50,500 square metres.

Of that space, a minimum of 25 per cent is to be set aside for hotel use.

The land parcel is envisaged to also feature other uses like retail, food and beverage, art and entertainment facilities.

The tender will close on 18th August. - CNA/fa



URA says the land parcel, which is 1.43 hectares in size, is slated for commercial use with a hotel component - Image from URA

ST : Aspial buys Changi Complex

Apr 22, 2010

Aspial buys Changi Complex

By Esther Teo

JEWELLERY retailer Aspial Corp has gone back into the property scene to snap up Changi Complex in a collective sale deal for $54.3 million.

It will also have to pay a development charge of $3.6 million for the site, which is zoned 'residential with commercial on the first storey', according to property consultants Teakhwa Real Estate, which brokered the deal.

The owners of the 40 apartments will get about $1.2 million each while the owner of the shop unit will get $1.8 million, Teakhwa said.

The freehold site at the busy corner of Bedok Road and Upper Changi Road has a plot ratio of 1.4 and an area of 61,670 sq ft. It could yield a permissible gross floor area of about 94,972 sq ft, including the additional 10 per cent balcony area.

Aspial, which bought the site through its subsidiary World Class Land, said yesterday that it intends to have commercial units on the first storey and flats on the second to fourth storeys.

'As the property has a wide frontage and is prominently located, the company plans to create an iconic landmark development with a 'vibrant, hip village setting' with lifestyle shops and alfresco eateries,' it added. Teakhwa said the site could accommodate a low-rise development of about 200 units of 500 sq ft each.

It added that the breakeven cost would be $980 per sq ft (psf) to $1,000 psf. New apartments can fetch about $1,300 psf while the shop units can sell in excess of $2,000 psf, Teakhwa said.

Aspial may also be able to buy adjoining land of a total of 10,457 sq ft from the relevant authorities.

This is not the first time the firm - which operates the largest jewellery chain in Singapore under the brand names Aspial, Lee Hwa, Citigems and Goldheart - has ventured into property.

Last August, World Class Land bought a cluster of 18 freehold shophouses fronting Joo Chiat Road and Onan Road for $25.63 million. The properties comprised two rows of nine units of three-storey shophouses with a site area of 35,440 sq ft.

Aspial said the cost of the Changi Complex acquisition and development will be funded internally and through bank borrowings.

The transaction is not expected to have any material impact on the earnings and net tangible assets of the company this year, it said.

ST : Double-helix bridge to open with a bang

Apr 22, 2010

Double-helix bridge to open with a bang

Fireworks to mark its debut in Marina Bay; name to be unveiled

By Tessa Wong

SINGAPORE's newest landmark in Marina Bay will debut this Saturday.

This is the iconic pedestrian bridge shaped like a double helix, which will link the part of the Bay near the floating platform to the soon-to-be opened Marina Bay Sands integrated resort.

The official name of the bridge will be unveiled that evening, and the public is invited to catch a two-minute pyrotechnics display, along with music, dance, drum and gongfu performances.

The vehicular bridge running parallel to it and the Youth Olympic Park at the entrance to the bridges will also be declared open that evening. The first vehicles will cruise across the bridge from 3pm the next day.

Those attending Saturday's event may use the seats on the floating platform on Marina Bay from 6.30pm.

Bands, jugglers, stilt-walkers and fire-twirlers will add to the evening's razzmatazz from 7.30pm. This will be followed by the pyrotechnics at 8pm, at the official opening attended by National Development Minister Mah Bow Tan.

The 280m long bridge, built to take 16,000 people, will welcome its first public users at 9.30pm; the organisers expect about 2,000 party-goers to show up.

The festivities will continue the next day, with more dance and musical performances from 5.30pm to 9pm.

The pedestrian bridge, plans for which were announced in 2006, was conceived as one of many jewels on a 'necklace of attractions' ringing the Bay.

These include the Marina Bay Sands integrated resort, the Marina Bay Financial Centre, and the upcoming Fullerton Bay Hotel and Customs House, a nightspot complex.

With the double-helix bridge and the pedestrian footpath on the vehicular bridge open, a 3.5km pedestrian loop around the Bay will be complete.

Designed by Australia's Cox Group, the London-founded Arup and homegrown Architects 61, the bridge arches 8.8m above Marina Bay, giving enough clearance under it for pleasure craft to enter the Bay.

The steel used in the structure is no ordinary metal. It is a special duplex stainless steel normally used in the chemical industry to transport highly corrosive material.

The Marina Bay Sands resort on one end of the bridge will have its Phase 1 opening on Tuesday. From then on, it will be accessible by car via the vehicular bridge.

Those walking to the resort from next week can use the double-helix bridge and cross over to the pedestrian footpath on the vehicular bridge.

When the Phase 2 of Marina Bay Sands opens in June, the double-helix bridge will lead directly to the resort.

The Youth Olympic Park next to the floating platform on the other end of the bridge is Singapore's first art park.

Named after the upcoming Youth Olympic Games in August, it will feature 27 pieces of art by local youths, depicting life's aspirations; Olympic-themed artwork will be introduced in July.

The two bridges and the park cost $82.9 million.

twong@sph.com.sg



ST PHOTO: DESMOND WEE

ST : Sibor and SOR fall, but home loan rates rise

Apr 22, 2010

Sibor and SOR fall, but home loan rates rise

Banks charging more in response to rising property market

By Gabriel Chen & Harsha Jethnani

TWO key interest rates that determine how much your home loan costs are near their all-time lows but borrowers taking out new mortgages may not be better off.

Borrowers usually benefit when these measures drop but this time banks are responding to the riskier economic climate and surging property market by charging more for loans.

The most well-known of these measures - the three-month Singapore Interbank Offered Rate, or Sibor - fell below 0.6 per cent on Tuesday. This brought it near the all-time low of 0.56 per cent struck in June 2003.

Another popular benchmark rate - the Singapore dollar Swap Offer Rate (SOR) - hit 0.307 per cent last Thursday. This was the lowest level in at least a decade, according to Bloomberg data.

The rates, already low as they track prevailing United States rates, which are at rock bottom, fell further last week after the Singdollar rose.

Borrowers can take out mortgages pegged to these measures but those who expect these loans will follow the two rates down will be disappointed. Some banks have upped the spreads that they charge above Sibor and SOR, making loans linked to the rates more expensive.

'Property prices have gone up to previous highs and the risk of financing a property has gone up, so banks are pricing this risk into their margins,' said a consumer banker.

At DBS Bank, a home buyer taking a loan of 80 per cent of his property's value around March would have paid a rate of Sibor plus 0.5 percentage points for the first year and Sibor plus 0.75 percentage points for the second.

A buyer opting for this DBS package now will have to pay Sibor plus 1 percentage point for the first two years.

Standard Chartered Bank has also revised spreads for its three-month Sibor-pegged loan. It is now charging Sibor plus 1.25 percentage points, compared with 1 percentage point in March.

Loans pegged to the SOR have also been hit by the increasing spreads.

For example, the margins for OCBC Bank's two-year packages linked to the SOR have shot up from March to April, with a rise of 0.25 percentage points for its one- and two-year packages.

The higher spreads will affect a growing number of borrowers as Sibor-linked loans have become increasingly popular since their launch about three years ago.

Mr Dennis Ng, spokesman for www.HousingLoanSG.com - a mortgage consultancy portal - said lenders on the new DBS package will fork out more each month than those on the older deal. Mr Ng calculated that borrowing $500,000 over 20 years at a constant Sibor rate of 0.7 per cent will cost $115 more in monthly instalments during the first year, and $58 a month more in the second.

Sibor is very low now as it tracks the US Federal Reserve Fed funds target rate, which is near zero.

SOR comprises the bank's prevailing lending costs plus Sibor.

Both Sibor and SOR, both already low, dropped over the last week after the Monetary Authority of Singapore tightened the Singapore dollar. The appreciation of the Singdollar is likely to attract capital inflows, which means banks have plenty of cash to lend.

'When you have excess liquidity, this will typically drive down short-term interest rates,' said OCBC economist Selena Ling.

With higher interest rates expected in the later part of this year, home buyers opting for floating rate packages such as Sibor-pegged mortgages could end up paying more - assuming bank loan spreads do not change.

'I think Sibor will likely creep slightly higher in a fairly gradual and incremental fashion from current levels towards the 0.8 per cent to 1 per cent range in the second half of this year,' Ms Ling added.

The increasing spreads that banks charge above Sibor and SOR are unlikely to affect the property market for now at least, say real estate experts.

'The perceived returns and profits from investing in property are still higher and can justify the interest rate,' said Mr Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic.

DBS said it offers competitively-priced deals with different features. StanChart and OCBC said their rates were reviewed periodically so that they moved in line with the industry, the general interest rate environment and business considerations.

Other banks including UOB, Citi, Maybank, HSBC, and Hong Leong Finance did not comment on whether any changes would be made to their interest rates in the future.

gabrielc@sph.com.sg

harshamj@sph.com.sg


--------------------------------------------------------------------------------


With higher interest rates expected in the later part of this year, home buyers opting for floating rate packages such as Sibor-pegged mortgages could end up paying more



PHOTO ILLUSTRATION: MIKE M DIZON and ISTOCKPHOTO

BT : Hong Kong may suffer fallout from China's anti-bubble moves

Business Times - 22 Apr 2010

Hong Kong may suffer fallout from China's anti-bubble moves

Stronger yuan will make HK homes more attractive to mainland Chinese

(HONG KONG) China's steps to cool record property price gains and allow the yuan to appreciate may stymie Hong Kong's efforts to contain surging home values in a city with its own currency pegged to the US dollar.

A stronger yuan would make Hong Kong's homes more affordable to mainland Chinese, who have helped drive a 38 per cent jump in prices since end-2008, and fuel further increases, seven out of nine analysts surveyed by Bloomberg News said. A revaluation may also encourage locals to buy property to hedge against inflation, they said.

China may allow the yuan to appreciate as it tries to avert the bursting of asset bubbles after stimulating an economic recovery last year with record new loans. The government is stepping up measures to rein in the real estate market with curbs on third-home purchases and increased downpayment requirements after a record increase in home prices in March.

'China can't care so much about Hong Kong, because it has problems cooling down its own property market,' said Francis Lui, an economics professor at the Hong Kong University of Science and Technology. 'Hong Kong can't control China, it has no monetary policy and the only tool is to increase land supply, but it will take around four years to build.'

China will allow the yuan to appreciate by June 30 to curb inflation, a survey of analysts showed last week. Options prices suggest that Hong Kong's central bank would maintain its 26-year-old peg to the greenback.

Ruled as a special administrative region of China, Hong Kong is the mainland's trade and financial hub with its own legal and currency systems. With the peg to the US currency, Hong Kong has kept its base rate at a record low of 0.5 per cent since December 2008, resulting in 20-year-low home loan costs.

Low interest rates, coupled with an inflow of Chinese buying, led Hong Kong's home values to rise 29 per cent last year, according to Centaline Property Agency Ltd, one of the city's biggest realtors. Luxury residences climbed 45 per cent, according to London-based property broker Savills Plc.

About 19 per cent of buyers of luxury properties - those that cost at least HK$10 million (S$1.77 million) each or are bigger than 1,000 square feet - last year were from mainland China, Centaline said.

The price jump has sparked a public outcry over housing costs and increased pressure on Hong Kong's government to raise land supply. Financial Secretary John Tsang said yesterday that the government was 'highly concerned' about gains in home prices and would speed up land auctions to make more property available.

The city may also raise the stamp duty on homes sold for less than HK$20 million and warned that low mortgage rates won't continue forever. The government in February said that the stamp duty on homes selling for more than HK$20 million would be increased to 4.25 per cent from 3.75 per cent as of April 1.

It raised downpayments on luxury homes to 40 per cent from 30 per cent in October, limited coverage on some loans and clamped down on marketing techniques.

The city's home prices rose the most among the world's major housing markets last year, London- based property adviser Knight Frank LLP said in January, climbing 33 per cent on average.

The International Monetary Fund and investor Jim Rogers warned of a possible bubble in Hong Kong. Mr Tsang said that the government wants to reduce the risk of a 'property bubble' and keep housing affordable when he delivered his Budget speech on Feb 24.

'Mainland Chinese buying is the most important factor driving up Hong Kong luxury home prices,' said Louis Chan, managing director of residential properties at Centaline. A stronger yuan would 'be positive for luxury properties, as they like to buy those that cost between HK$20 million and HK$30 million', Mr Chan said.

He likened the rich mainlanders to wealthy Hong Kong residents buying properties in London. 'These people have deep pockets; the Chinese buy Hong Kong homes to invest, and they like the freedom here where turnover is quick and there are no government constraints on property transactions.' - Bloomberg

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : International Property Advisor aims to bridge gap between banking, real estate

Business Times - 22 Apr 2010

International Property Advisor aims to bridge gap between banking, real estate

It will help manage real estate portfolios of wealthy investors

By UMA SHANKARI

FORMER Savills analyst Ku Swee Yong hopes to shake up the real estate scene here with his new agency International Property Advisor (IPA).

IPA aims to connect high net worth individuals to suitable real estate investment products.

'We want to provide a service to represent the private wealth that goes into real estate investments,' said Mr Ku.

He was most recently a director with SG Private Banking's real estate division before he left early this year to set up IPA. Prior to joining SG Private Banking in 2008, he was director of marketing and business development at Savills Singapore for more than two years.

Mr Ku said that he set up IPA to fill a gap in the real estate advisory space. Right now, most property firms in Singapore employ agents who instruct clients on buying, selling or leasing physical real estate - without considering other classes of real estate investments such as equities.

But private clients - generally defined as clients who qualify for private banking accounts - require a different approach, says Mr Ku

'We require consultants and brokers who are able to think on behalf of the private client, and this involves knowledge of the client's portfolio and the wide range of investment products competing for the client's attention,' he said.

With IPA, Mr Ku expects to bridge the gap between bankers and real estate consultants.

'Bankers are typically not equipped to deal with or cannot understand or manage real estate as part of their core work,' he said. 'And real estate professionals typically do not have enough financial knowledge. We bridge this gap and differentiate ourselves by providing a holistic solution for clients.'

IPA will help manage the real estate portfolios of wealthy investors to preserve and enhance value, tailor real estate portfolio strategies to clients' objectives, such as estate planning to wealth creation, and broker transactions on the ground, which will give the team first-hand knowledge on prices and the demand and supply situation.

Mr Ku says that there is tremendous potential for such services. About a fifth of high net worth individual wealth in the Asia-Pacific is in real estate and there has been growing interest in property-related investments.

Mr Ku, who is already working on projects for clients, is looking to tie up with private banks and businesses in need of real estate expertise. He is also looking to hire and will increase IPA's headcount from the current five to 12.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



'Bankers are typically not equipped to deal with or cannot understand or manage real estate as part of their core work.'
- Mr Ku

BT : HK to release sites to counter home price rise

Business Times - 22 Apr 2010

HK to release sites to counter home price rise

(HONG KONG) Hong Kong's government is 'highly concerned' about gains in home prices and will accelerate a series of auctions to make more property available, Financial Secretary John Tsang told lawmakers yesterday.

Mr Tsang said the city may also raise the stamp duty on homes sold for less than HK$20 million (S$3.5 million) and warned that 20-year-low mortgage rates won't continue forever. The government in February said the stamp duty on homes selling for more than HK$20 million would be increased to 4.25 per cent from 3.75 per cent as of April 1.

'I urge residents or investors to carefully assess the impact of climbing interest rates on mortgage payments when they consider buying apartments,' Mr Tsang said.

Buying by mainland Chinese and low borrowing costs drove a 29 per cent surge in Hong Kong home prices last year, prompting the government to raise downpayments on luxury homes in October and increase taxes on those purchases this month. Mr Tsang pledged to reduce the risk of a property market bubble and keep housing affordable for low-income families.

'I understand the worries of residents about rapidly rising home prices, and I agree that we need to reduce the bubble risk in the property market to avoid any impact on the financial system's stability and the recovery in the real economy,' Mr Tsang said.

Two residential sites, one in Kowloon and the other on Hong Kong Island, will be auctioned off in June and July, bringing to four the total number of sites the government is selling in the coming three months, Mr Tsang said.

Low interest rates won't be sustained for long as governments around the world wind back stimulus measures, he said\. \-- Bloomberg

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : Good returns seen from mature markets

Business Times - 22 Apr 2010

Good returns seen from mature markets

KepLand property fund unit positive on residential, office, retail and hospitality

By EMILYN YAP

EMERGING economies may be all the rage, but Keppel Land's property fund manager Alpha Investment Partners still sees good returns coming from matured Asian markets.

Alpha is positive on the residential, office, retail and hospitality sectors in 'core' markets such as Singapore, Hong Kong, South Korea and Taiwan. The one sector that has not caught its fancy is that of logistics properties.

'On a risk-adjusted basis, the returns are quite attractive,' said Alpha managing director Loh Chin Hua yesterday, at the sidelines of the Asian Public Real Estate Association Property Leaders Forum.

Alpha adopts a barbell strategy for the Alpha Asia Macro Trends Fund, which is 70-80 per cent focused on core markets, and 20-30 per cent focused on fast-growing ones.

It is not for a lack of opportunities that Alpha is less involved in developing economies. Take China for instance - Mr Loh recognises that it is an important market offering much investment potential, but there are other downsides at play.

'We always look at risk-adjusted returns, how easy it is to execute transactions, and right now, it is quite challenging for an institutional investor to be investing in China,' he said.

During a panel discussion at the forum, Mr Loh spoke of changing regulations in China and the complexities that poses. A lot of these changes are retroactive and 'you just have to accept them'.

But Alpha will continue to seek out deals in China, and it is confident that residences catering to middle income earners in second tier cities will still see demand.

In Singapore, Alpha is interested in the retail, hospitality and residential sectors. It has a fund which is part of a consortium owning Katong Mall. 'We still believe that suburban malls generally will do well,' Mr Loh said. 'There will be a number of new subway lines coming up, so there could be more opportunities in that area.'

The office market here could surprise on the upside, he added. While a substantial amount of new office space will be coming up, rents have historically 'responded more to demand changes than to supply changes'. Banks are hiring again, and 'the analysts might be a little bit too negative on the office sector', he said.

According to Mr Loh, Alpha is seeing a healthy deal flow and is working on a number of transactions. Around 30 per cent of its US$1.2 billion Asia Macro Trends fund has been invested, and this could rise to 50-60 per cent soon.

He also said that risk appetite has improved, and some investors have approached Alpha to start new funds.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



Mr Loh: Alpha is seeing a healthy deal flow and is working on a number of transactions

BT : New govt curbs won't dampen demand: Mobius

Business Times - 22 Apr 2010

New govt curbs won't dampen demand: Mobius

(SHANGHAI) Demand for housing in China will withstand government bank lending curbs, and further declines in the nation's property stocks may be an opportunity to buy the shares, Templeton Asset Management's Mark Mobius said.

'We don't see fundamentals of the property industry will change much because of these new policies,' Mr Mobius, executive chairman at Templeton, said in response to questions.

'We are in general still light on Chinese developers and if this correction brings valuations to more attractive levels, it would be a good opportunity for us to step up our positions.'

A measure of 34 property stocks on the Shanghai Composite Index has plunged 8.8 per cent this week after the government limited loans for third-home purchases, increased down payment requirements and raised mortgage rates. China's cabinet has said stricter measures to control speculation are needed after property prices in 70 cities jumped a record 11.7 per cent in March.

Martin Currie's Chris Ruffle said in an interview this week Chinese real estate stocks are becoming 'more attractive' as government measures drove valuations to a year-low and made interest rate increases less likely.

China Asset Management, the nation's biggest mutual fund company, bought developers in its flagship fund in the first quarter, predicting 'gentle' tightening this year, according to its website.

Economists are split on the timing of the nation's first interest rate increase since 2007. Royal Bank of Canada said higher rates are likely this quarter and could come this month, while Bank of America-Merrill Lynch sees no move until the fourth quarter.

The SE Shang Property Index has lost 19 per cent this year, the most among the five industry groups. It now trades at 22.8 times reported earnings, the lowest since March 2009, according to data compiled by Bloomberg.

China on Tuesday ordered developers not to take deposits for sales of uncompleted apartments without proper approval and barred them from charging 'abnormally high' prices, stepping up efforts to prevent a property bubble. The Ministry of Housing and Urban-Rural Development vowed to punish developers that 'artificially' create supply shortages.

China's banking regulator also told larger banks to conduct quarterly stress tests on property loans and ensure the risks of such lending is strictly controlled, according to a statement on the China Banking Regulatory Commission's website.

'Recent policy changes on property and mortgages were introduced with the purpose of curbing speculation, but not hurting real demand,' Mr Mobius said.

Shenyin & Wanguo Securities Co analysts led by Zhu Anping said on Tuesday investors should avoid property-related stocks because earnings at developers may deteriorate.

Mr Mobius said China will have 'strong real housing demand growth' over the next decade as more people move to the cities\. \-- Bloomberg

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



Mr Mobius: Policy changes introduced to curb speculation and not hurt real demand