Oct 31, 2007
Wing Tai bullish despite end of deferred payment scheme
By Nicholas Fang

THE scrapping of the deferred payment scheme for new homes has
failed to dampen the optimism of property group Wing Tai Holdings.

It can still offer the scheme on two yet-to-be-launched condominiums
as it had obtained approval before the Government withdrew the
scheme last week. The scheme allowed homebuyers to postpone most
payments on uncompleted property.

The move to end the scheme was aimed at deterring speculators and
forcing people to be more prudent when committing to pricey real
estate.

Wing Tai chief operating officer Tan Hwee Bin told The Straits Times
yesterday that ending the scheme was a good idea as it would create
a basis for strong, sustainable market growth in the long run.

‘There will be a short-term impact for the market as a whole as
buyers will have to manage their cash flows better.’

But she did not believe that Wing Tai itself would be affected,
given its portfolio of largely upmarket developments.

‘About 80 per cent are located within districts 9, 10 and 11, and
many of our clients are high net-worth individuals and serious
investors as opposed to speculators.’

Wing Tai still has approval to offer deferred payments for its L’VIV
condo in Newton Road and Belle Vue Residences in Oxley Walk – both
set to be launched in the first half of next year.

Mainboard-listed Wing Tai yesterday said net earnings for the three
months ended Sept 30 doubled to $61.8 million due to higher
contributions from its VisionCrest and Casa Merah projects.

Revenues fell to $100.2 million from $164.8 million previously.
Earnings per share rose to 8.58 cents from 4.29 cents while net
asset value per share went up to $2.14 as at Sept 30, from $2.07 as
at June 30.

Wing Tai also intends to increase its stable of retail and lifestyle
brands next year. These businesses now contribute more than 10 per
cent of revenues.

It currently has 18 brands in 129 outlets in Singapore, including
well-known names such as Topman and Warehouse, sports giants Nike
and Adidas, and mass market labels such as G2000, and Japanese
restaurant chain Yoshinoya.

Ms Tan said Wing Tai is in talks with several mid- to high-end
brands from Europe, Asia and the United States about coming to
Singapore, but declined to reveal details.

ALREADY APPROVED

Wing Tai can still offer deferred payments for two upcoming launches
in Newton Road and Oxley Walk, says chief operating officer Tan Hwee
Bin.

Oct 31, 2007
MAS forecasts more moderate growth next year
Diversified economy with less reliance on tech sector will soften
external risks By Jessica Cheam

SINGAPORE’S sizzling economy – on track for 7 per cent to 8 per cent
growth this year – is expected to hum at a somewhat slower rate next
year.

But it is still expected to power ahead at a 4 per cent to 6 per
cent rate of expansion, thanks to a far more diversified economy.

In highlighting interesting shifts in the make-up of the economy
yesterday, the Monetary Authority of Singapore’s (MAS) latest macro-
economic review threw up this dramatic fact: the electronics
industry, once all-important to the economy, contributed a puny 4
per cent to economic growth in the first half of this year.

That is a sea change from as recently as 2000, when its contribution
to growth was a hefty 40 per cent.

Relying less on this sector to bring in the goods is, however, a
good thing for the economy, especially in the face of a number of
factors that could cause some economic turbulence – and thus lead to
lower growth – next year.

Among these: high oil prices, now at about US$93 (S$135) a barrel,
and possible further volatility in global markets.

But, the central bank said, diversified growth sources should see
Singapore through.

For example, the booming construction, marine and oil-rig building
industries will lead economic expansion next year. The MAS said the
building boom will have its biggest payoff for the economy later
this year and into the next, as many projects will be ready to
receive large payments.

And as high oil prices continue to drive oil exploration, demand
will spike for oil rig projects. A record number of oil rigs is set
to be delivered by Singapore’s big shipyards next year.

Another strong performer will be the biomedical sector -
pharmaceuticals and medical equipment, for instance.

‘This year, we can really see a marked change in the diversification
of our gross domestic product (GDP),’ said CIMB-GK economist Song
Seng Wun. ‘It’s the first time since the Asian financial crisis that
we have this kind of balanced growth.’

Another key driver of growth this year, the MAS said, was ‘asset
market-related’ activities – related to the property and financial
services sector.

This contributed almost 30 per cent of GDP growth in the first half
of this year, up from just 16 per cent for 2006.

It includes the wealth advisory and capital market segments, and the
construction sector, which has been driven by the property boom.

This has also spilled over to financial and business services, where
loans to the building and construction industry has hit double digit
growth since the second half of last year.

Economists that The Straits Times spoke to are more optimistic about
next year’s growth than the MAS.

CIMB-GK’s Mr Song is looking at a baseline growth of 6.5 per cent
next year, while Standard Chartered economist Alvin Liew has set a
5.7 per cent target.

‘Growth will still be strong in various sectors, but it won’t be
surging at the rates we’ve seen this year,’ he said.

But economists say one crucial aspect to watch out for is rising
inflation.

It hit 2.9 per cent in August – the biggest monthly rise since 1994.

MAS expects inflation of 1.5 per cent to 2 per cent this year, and
up to 3.5 per cent for the first half of 2008.

But it expects this to ease in the second half of the year, with
inflation at 2 per cent to 3 per cent for the whole of 2008.

‘Ultimately, if we have high inflation, that could be destabilising
for the economy. But we don’t think that’s a big risk,’ said Mr
Song.

Oct 29, 2007
Orchard Road’s big makeover on the way

WHAT IT IS

THE Singapore Tourism Board will unveil today details of its big
makeover of Orchard Road, Singapore’s premier shopping belt, which
will boast a new look from next year.

Included in the sprucing-up plans are the widening of its pavements,
zoning to introduce different themes to its surroundings and ambient
lighting.

WHY IT MATTERS

Orchard Road remains one of the Republic’s biggest tourist
attractions, and tourism is turning out to be one of the hottest
industries now.

Tourist arrivals and hotel room rates have soared to new records in
the past three months.

Singapore is also under the global spotlight as it will host the
world’s first night race on the F1 Grand Prix circuit next year.

There are also several upcoming attractions, including the Singapore
Flyer and the Integrated Resorts at Marina Bay and Sentosa.

To meet the anticipated demand for skilled tourism workers, the
Government last week announced a $360 million plan to train such
workers.

So this latest spruce-up of Orchard Road has been widely anticipated
as one of the key ways to maintain its attraction as a key shopping
promenade in Asia.

Oct 27, 2007

Rentals for private homes, HDB flats continue to soar

Private home rents jump 11% while HDB flat rents surge 21% on landlords’
increased expectations

By Fiona Chan

TENANTS complaining about rising home rentals now have official figures to
back them up.

Rents of private homes and HDB flats soared in the July to September period,
according to the latest data released by the Government yesterday.

They climbed 11.4 per cent for private homes, on top of the 10.4 per cent
increase in the previous three months.

This means that since January, private home rentals have already jumped by
32.2 per cent, compared with only 14.1 per cent for the whole of last year.
They are now at their highest level in at least nine years.

As for HDB five-room flats, the overall median rental – the level at which
half the rents are higher and half are lower – surged by 21.2 per cent in
the third quarter.

One reason for the strong growth in rents could be the increased
expectations of landlords, said Mr Leonard Tay, the director of research at
consultancy CB Richard Ellis.

Rents are also being pushed up by an increasing demand for completed homes,
and a shortfall in supply at the same time, he added.

A large number of collective sales in the last two years has led to the
demolition of existing homes and has forced the sellers to become home
seekers.

With no respite in sight – fewer homes are expected to be completed next
year than average – rents will continue to surge, said Ms Tay Huey Ying, the
director of research and consultancy at Colliers Internaitonal.

She said that according to yesterday’s data, only 5,541 homes are expected
to be completed next year. This compares with a net average of 7,670 new
homes between 2000 and 2004, before the collective sale fever set in.

‘If we take into consideration the withdrawal of units because of collective
sales, there will probably be a net addition of only 3,500 to 4,000 homes
next year,’ she said. Due to this acute shortage of completed homes ready
for immediate occupation, Ms Tay expects rents to rise between 40 per cent
and 43 per cent for the whole of this year.

But she also predicts that the rate of growth will moderate after that. Her
forecast for next year: a rise of 30 per cent to 35 per cent.

‘We expect rents to continue to grow strongly, but we do expect growth to be
slightly slower than it was this year,’ said Ms Tay.

‘This is partly because we are already coming from a high base. Also, we
could be seeing resistance to higher rentals; people could be reconsidering
Singapore as a place to live.’

Beyond that, she believes that home completions will shoot up in 2009, which
may help to stabilise rents.

Yesterday’s figures showed that rents grew across the board for non-landed
private properties.

They rose 12.2 per cent in the core central region, which covers Orchard,
Holland, River Valley, Bukit Timah, Marina Bay and Sentosa.

In the rest of the central region – stretching to Marine Parade, Queenstown,
Geylang and Bishan – rents increased 11.9 per cent. For the rest of the
country, rents went up 11.8 per cent.

This even rate of growth is likely to be the trend ahead, said Colliers’ Ms
Tay.

For HDB resale flats, median rents crossed the $2,000 mark for five-room
flats in Bukit Merah and the Central area, as well as executive flats in
Bishan, Kallang/ Whampoa, Clementi and Queenstown.

Overall, median rents were $1,200 for three-room units, $1,400 for four-room
units, $1,600 for five-room flats and $1,700 for executive flats.