It aims to build homes people are comfortable in, says group chief

PROPERTY developer CapitaLand says it has no plans to build so-called shoebox flats – those occupying less than 500 sq ft.

Group president and chief executive Liew Mun Leong said at a briefing last Friday that building such small apartments would be akin to ‘spoiling the land’.

These micro homes – derisively called Mickey Mouse or shoebox flats – usually have a high per sq ft (psf) value. However, their tiny size results in a lower absolute price, so they are popular with home buyers, who find them more affordable.

Mr Liew said projects should not be designed with just a quick sale in mind: ‘We want to build homes that people can use, can be comfortable in, can develop in.’

At CapitaLand Residential Singapore, chief executive Wong Heang Fine noted that changing market dynamics would inevitably lead to smaller homes, but he stressed that the firm would not build flats under 500 sq ft.

He said its focus for the year ahead would be on replenishing its land bank.

It has 2,500 launch-ready homes that have yet to be released for sale. It will launch 1,700 units this year, with the majority entering the market over the next three months.

At d’Leedon, more units will be released this year – 750 – with the first batch being rolled out this week.

The remaining 390 units at The Interlace will be released soon after, followed by 55 luxury homes at The Nassim.

Some of the 500 units set aside for the new development at the Bedok Town Centre site will also be launched this year, during the second or third quarter.

In addition, the 64 homes from the Urban Resort project at Cairnhill Road will come on stream this year.

Units at both Urban Resort and The Nassim will be sold through private appointments.

Mr Liew indicated that CapitaLand had its eye on several collective-sale sites. He said it was also keen on residential sites – on both the confirmed and reserved lists – offered as part of the first half of this year’s Government Land Sales programme.

Sites at the city fringe or near MRT stations would be high on CapitaLand’s wish list.

Still, Mr Wong and Mr Liew agreed that even though CapitaLand’s balance sheet was healthy enough to allow it to bid for all the sites it was interested in, it would do so with ‘disciplined aggression’.

CapitaLand predicts that home prices are likely to increase by 5 to 10 per cent this year, with those in the high-end segment rising by 10 to 15 per cent.

Its optimism with regard to this segment has spurred it to market projects such as The Interlace in China and India.

It does not believe government measures will be introduced to curb foreign interest in the high-end market.

‘Singapore is a very open economy. If we start to have such restrictions, it would destroy the image we have of being an open economy,’ said Mr Liew.

Source: Straits Times, 10 Jan 2011

(SINGAPORE) GuocoLand yesterday clarified that it currently has no plans to establish a real estate investment trust (Reit).

The property group was responding to a report in The Business Times on Wednesday which said that GuocoLand may look at floating two Reits – one office and the other retail – with assets worth about $6 billion to $8 billion in total.

The Reits, now under study, may be floated over the medium term, the report said.

GuocoLand, which is the Singapore-listed unit of Malaysian tycoon Quek Leng Chan, said that it currently has no plans to set up Reits.

But the group added that it will review this as a possible strategy to extract value from its property portfolio at the appropriate time.

GuocoLand has a pipeline supply of investment properties – at various stages of development – totalling about four million square feet gross floor area for offices and about 4.6 million sq ft retail space as well as some 5,000 car-park lots.

Most of this portfolio is not completed. Because of this, potential Reit flotations would be about three to five years away, judging by the completion timeline of the projects, analysts were quoted as saying.

GuocoLand shares closed four cents higher at $2.59 yesterday.

Source: Business Times, 30 Dec 2010

TUAN Sing Holdings, a relatively low-profile diversified property group controlled by the Liem family, seems to be stirring of late.

The group, which owns prime commercial property assets in the heart of the city and two 5-star hotels in Australia, among various properties, recently hit the headlines after it clinched two residential property sites for some $222 million.

It secured a 1.7 hectare 99-year leasehold site on Seletar Road for some $123 million. And it also successfully tendered for Serene House, opposite the upcoming Botanic Gardens MRT Station, for $99.1 million.

Tuan Sing is not widely followed by analysts. But given its growth and earnings potential in the property space, perhaps the market should be watching this company more closely.

The group, whose Botanika project established it as a notable player in the high-end boutique residential property market, seems to be looking to capitalise on this niche through its two recent property acquisitions.

Serene House has a freehold land area of 39,828 square feet and sits in a prime suburban location on Cluny Park Road. The site is zoned for residential use with a 1.4 plot ratio. Assuming the site can be amalgamated with the driveway, the total site area can be potentially enlarged to about 49,021 sq ft – enough for a four-storey condo with 68 units averaging 1,000 sq ft. Analysts estimate the project could break even at about $2,000-2,100 per square foot.

But units at nearby Nassim Park Residences have sold at an average price of $3,659 psf in the second half of this year.

Exciting the market

Over at Seletar, based on an average price of $1,300 psf for The Greenwich project next door, Tuan Sing’s profit margin could be in the region of 30 per cent.

Besides these two projects, it is developing a high-end boutique cluster housing at its Mont Timah site.

But what could really excite the market about Tuan Sing are its plans for its portfolio of prime commercial properties right in the heart of Singapore’s financial district.

This is a cluster of three properties, comprising the ageing 13-storey Robinson Towers on Robinson Road, its adjacent Annex building, and the 13-storey International Factors Building. Together, they have a total built-up plot ratio of 10 times, comprising a total floor area of some 12,500 square metres, or some 134,000 sq ft.

Tuan Sing’s valuation of these properties, done last year, was $206 million.

Market watchers believe these properties are significantly undervalued. For example, Robinson Towers is valued at about $1,500 psf, compared to $2,600 psf average fetched by neighbouring Finlayson.

Meanwhile, the Urban Redevelopment Authority (URA) is reviewing the land use zoning of sites in the central business district to ensure a steady supply of office space. Given that Tuan Sing’s properties sit close to the fast developing and rejuvenated Marina Bay area – where projects like One Raffles Quay, Marina Bay Financial Centre and The Sail sit – it’s not a question of whether redevelopment will happen, but when.

Strong balance sheet

And any such move – whether to build spanking new office towers or residential apartments – will be a catalyst for a significant re-rating of the company and its stock (which incidentally trades at a significant discount to its NTA per share of 45 cents).

Indeed, the handful of analysts who occasionally do glance at the company note the strength of its portfolio and balance sheet.

Kim Eng recently pointed out that after stripping out the market value of its stakes in industrial companies SP Corp and Gul Tech, the implied market value of Tuan Sing’s Singapore office portfolio and 50 per cent stakes in its two 5-star hotels in Melbourne and Perth, respectively, works out to only $180 million – significantly below their fair value.

The company, which sold its stake in Katong Mall for $248 million earlier this year and its Adelaide hotel for $75 million last year, has $204 million in cash balances. And it posted a net profit of $45 million last year, and $31 million for the first nine months of this year.

Given its solid property portfolio, strong balance sheet and potential earnings inflow, Tuan Sing is a company which is worth a serious look for investors seeking out undervalued property plays heading into the new year.

Source: Business Times, 22 Dec 2010

Many will need to replenish landbanks after bumper year

RECORD property sales this year have left developers scraping the bottom of the barrel with many facing a paucity of unsold units and undeveloped home sites.

A record-breaking 15,025 homes were sold in the first 11 months, which probably caught many developers by surprise coming so soon after the recession.

That means numerous developers could well be on the lookout to buy land in the year ahead, including collective sale sites.

A report by research firm Kim Eng found that nine out of the 13 Singapore Exchange listed developers which it tracks had fewer than 1,000 residential units available for sale as of Thursday.

Demand for homes is still strong despite recent government cooling moves and a major release of new state land.

Only three developers had more than 2,000 units. City Developments tops the table with an estimated 5,381 units in its stash, more than double that of second- placed CapitaLand.

At the other end of the spectrum, UOL Group had fewer than 100 units.

Spottiswoode Residences, launched last month on the city fringe, was its last residential project here before exhausting its landbank. The project was already 74 per cent sold at the end of last month.

The majority of unsold units were in suburban areas, while another 5,522 homes in the city centre were still on offer. On the popular city fringe, just 1,843 units were still on the market.

Experts said developers such as UOL and Wheelock Properties, which are running low on land, are likely to have land acquisition on their agenda next year.

Keppel Land is left with fewer than 200 suburban units in its portfolio after a healthy take-up of 629-unit The Lakefront Residences near Lakeside MRT station. The project sold 437 units last month.

Unused land and unsold units are key indicators that developers will monitor.

Experts said developers without new land would obviously have trouble notching up profits. Another key factor was the profit margin on projects, which was partly determined by prices paid for land.

Kim Eng property analyst Ooi Yi Tung said: ‘A developer can be sitting on many plots of land but if it acquired those sites with very aggressive bids, the firm still won’t make money.’

Mr Ong Kah Seng, senior manager of Asia-Pacific research at Cushman & Wakefield, said the definition of ‘a healthy landbank’ varied according to the size of the developer in question.

‘Having two to three sites which are launch-ready in the financial year will add confidence for the developers and company investors but are not expected to radically affect the profitability of the company if it can be sustained by other real estate activities,’ he added.

Boutique property group EL Development’s managing director, Mr Lim Yew Soon, said his firm is looking to replenish its landbank. It is looking at all price segments, collective sale sites and government land sales.

‘Besides the former Diamond Tower in Balestier expected to launch in the first quarter, most of our sites are fully sold… As the cost of borrowing is low, this is also a good time for developers to get land,’ he added.

Developers’ leaner landbanks, however, are good news for home-owners gunning for collective sales. Former HUDC estate Pine Grove, Tulip Garden and Hawaii Towers are just some of the mega collective sales of more than $600 million that have or are expected to enter the market.

Developers are often keen on such sites as they provide an opportunity to purchase land in prime locations, unlike those from the government land sales, which are on 99-year leases.

Mr Png Poh Soon, associate director and head of research and consultancy at Knight Frank, said that more collective sites in the city fringe region can be expected to be put up for sale as the economy picks up and that developers are likely to take this chance to replenish their landbank.

Source: Straits Times, 18 Dec 2010

DEVELOPERS DANGLE GOODIES TO DRUM UP SALES

SOME developers are trying to lift sales by offering cash handouts and generous discounts if existing owners refer other people who then buy a flat in one of the company’s condominiums.

The owner making the referral can get a cash reward – it could be as much as $7,500 if a $1 million flat is sold – while the referred buyer gets a discount on his new purchase.

Other developers are using inducements such as free air tickets and other gifts to entice buyers to sign up.

But there is a catch: incentives like discounts, rebates and gifts must be declared when a mortgage application is filed with the bank.

A spokesman for the Monetary Authority of Singapore (MAS) said that financial institutions are required to deduct benefits offered by the developer from the property’s purchase price, and apply the loan-to-value (LTV) limit on this lower amount.

This housing loan rule applies to any benefit that reduces the purchase price of the property.

Several financial institutions, including OCBC and United Overseas Bank, require that clients declare any incentives received in cash or in kind.

One bank told The Straits Times that making a false application could even spell legal trouble.

But the tight rules have not stopped developers dangling carrots in front of buyers.

The Straits Times understands that Far East Organization’s scheme rewards an existing Far East home owner making the referral and a buyer who signs up.

The kitty is 1.5 per cent of the initial purchase price of the new unit: the person making the referral gets 0.75 per cent, while the new buyer enjoys a 0.75 per cent cut in the price.

Assume the person you referred to Far East buys a $1 million home. You can get a cheque for $7,500 and he gets a $7,500 cut on the price.

Property developer EL Development also gives out similar ‘goodwill discounts’. Managing director Lim Yew Soon said the initiative, which started in 2008, rewards buyers referred by friends or relatives with discounts of 0.5 per cent to 1 per cent of the purchase price.

But the scheme applies only to certain developments, including Rosewood Suites in Rosewood Drive and Steven Suites in Stevens Close.

Discounts are assessed on a case by case basis and only six clients have been approved, he added.

Last month, Wing Tai Holdings gave air tickets for a Hokkaido ski trip to buyers who bought units at its Ascentia Sky project in Alexandra View.

Industry experts said such schemes are not new and usually apply only to selected developments, such as those with units that need to be sold quickly.

ERA Asia Pacific associate director Eugene Lim said these strategies are also often used as a long-term game plan to buff up their customer loyalty and brand name.

Ms Wendy Tang, Knight Frank’s director of residential services, added: ‘Previous buyers make the best ambassadors because they will say, ‘I’ve purchased it and I’m recommending it because I believe it’s good’.’

Situations where buyers refer family and friends are also now a common occurrence – especially with the bigger developers, experts added.

‘They might have sold (previous projects) to buyers and now they’re selling to their children. Friends who like the idea of living together might also band together to purchase units near each other,’ DTZ executive director Ong Choon Fah said.

But depending on such tactics could backfire on developers and ultimately affect their profit margins, said analysts. Still, they are seen as preferable to cutting prices, which can become a slippery slope.

‘If you launch at this price from the onset and then reduce, buyers might expect prices to be slashed even further. Buyers might even expect (developers) to move their prices before they launch,’ said OrangeTee research head Tan Kok Keong.

But Ms Tang pointed out that factors like price and location ultimately outrank incentives when it comes to making the final purchasing decisions.

Source: Straits Times, 4 Dec 2010

Larger plots going on the market but reserve price may prove sticking point

MORE and larger collective sales are in the pipeline as home owners attempt to cash in on the hot property market – but experts say the actual number of successful sales might just disappoint.

Hawaii Tower along Meyer Road is among those in the latest batch to have secured the necessary 80 per cent approval from residents, along with former HUDC estate Pine Grove. And more than 53 per cent support has been secured so far in the collective sale process for Pearl Bank apartments in Outram.

The Straits Times understands that the reserve price for Hawaii Tower’s 192,340 sq ft plot, which was originally developed in 1984, has been set at $700 million.

This excludes a development charge of $55 million which, when included, works out to about $1,402 per sq feet per plot ratio. This is believed to be the freehold development’s third collective sale attempt.

Marketing agent CB Richard Ellis (CBRE) said in a notice posted at the District 15 development that owners of 110 of the 135 apartments had signed the collective sale agreement (CSA) as of Nov 24.

This equates to 80.93 per cent of the share values and 80.2 per cent of the strata area, CBRE stated.

Owners of the three-bedroom units of about 2,200 sq ft each are expected to pocket an average of just over $5 million, while owners of the six 4,300 sq ft penthouses can expect a windfall of $8.8 million if the reserve price is met. The tender is expected to open early this month and close at the end of next month.

Pine Grove was previously reported to have been put up for collective sale at a record-breaking $1.7 billion reserve price, after it achieved the crucial 80 per cent approval last month.

After the five-day cooling-off period, 534 out of 660 units – making up 80.9 per cent of the total share values and 80.63 per cent of the total strata area of the development – had signed the CSA.

Although more collective sale tenders are expected to come on the market in the first half of next year, experts say a wide gulf could be opening up between owners’ asking price expectations and what developers are willing to pay.

They add that high reserve prices and the bumper release of state land in the government land sales programme might reduce demand from developers cautious after the Government’s recent property cooling measures.

Mr Karamjit Singh, managing director of Credo Real Estate, said that while some collective sale projects set reserve prices in line with the market, others could seek the comfort of higher prices to assure themselves of sufficient profit to purchase replacement homes.

Even then, those that start off realistically may find themselves needing to raise the reserve price midway to win the 80 per cent approval, he added.

EL Development managing director Lim Yew Soon said that large quantums for mega sites were risky for single developers and would mostly price out small to mid-sized developers.

Development charges have increased substantially and the new rules regarding the completion period for developers with foreign shareholders would place further downward pressure on what developers are willing to bid, he added.

The proposed amendment to the Residential Property Act, which is expected to take effect early next year, will apply to private projects developed by developers with at least one foreign shareholder or foreign director – effectively covering most listed developers.

Such projects, built on residential sites bought from private-sector sources including collective sales, will in future have to be completed within a stipulated period. If not, developers could not only lose their bankers’ guarantees, as is the case now, but would also have to pay the state for any time extension.

DMG & Partners property analyst Brandon Lee said these amendments are more likely to affect prospective collective sales.

‘Developers who now acquire (collective sale) sites will effectively have their building period cut down from seven to five years. As such, we reckon this could act as a further dampener to the still-sluggish (collective sale) market, where developers replenish their mid- and high-end land bank,’ he noted.

But property market watchers say developers are often keen on such sites as they provide an opportunity to purchase freehold land in prime locations, unlike those from the government land sales programme, which are on 99-year leases.

CapitaLand Group chief executive Liew Mun Leong said last week that it was ‘a possibility’ that CapitaLand could be interested in bidding for the Pine Grove site.

Although the plot is attractive, the price tag of $1.7 billion is a hefty one, he said, and the group might consider tying up with partners to bid for the site.

Source: Straits Times, 1 Dec 2010

About half of Oxley’s planned units will be shoebox apartments

BOUTIQUE developer Oxley Holdings expects to launch up to nine new residential projects within the next six months, said chief executive Ching Chiat Kwong yesterday.

They will be mid-tier to high-end developments, either incorporating a retail element or supported by existing commercial centres nearby, with most having fewer than 50 flats each.

The projects will offer about 552 shop and residential units in all, with some to be built in areas that touch Stevens, Kovan, Holland and Braddell roads.

Units will range from studios of about 300 sq ft to penthouses of between 700 sq ft and 1,000 sq ft.

About half of the residential units will be so-called shoebox apartments of less than 500 sq ft, said Mr Ching, who was speaking to The Straits Times the day the firm launched its initial public offering (IPO) on the Singapore Exchange’s Catalist board.

It will sell 224 million new shares at 38 cents each, but there will be no public tranche.

‘We are providing a lifestyle niche concept preferably with commercial elements at the first storey to cater to the singles’ lifestyle.

‘Even if it doesn’t have shops, the surrounding neighbourhood will have amenities,’ he added.

Mr Ching is confident that the small-format units – Oxley is a prominent developer of this type of flat – will be well received as quantum prices will be affordable.

‘Singapore will also be the next big financial city. There will be a lot of talent coming in and they will seek to buy or rent such units, so it can be sustainable even for an investor… to see through retirement,’ he added.

Mr Ching said that Oxley Holdings expects ‘very stable results’ despite the recent market cooling measures, which he said were good as they prevented speculators from driving up prices.

‘It’s also good for developers as sellers have lower expectations of their selling price for land; or if they decide to go en bloc, it is likely to be more successful.’

Mr Ching said that while buying sentiment will be dampened, there was genuine demand from the growing ranks of young professionals and immigrants to sustain the market.

‘For units that I price reasonably with an affordable quantum, provided together with a lifestyle element, the chances for success, for a good take-up of the project. are good,’ he said.

Meanwhile, the IPO will raise about $81.2 million in net proceeds.

The cash will be used to partially finance the acquisition of five land sites already on its books, acquire new developmental sites and for working capital, Oxley said in a statement yesterday.

Oxley said also that it will look to expanding into industrial and commercial property or into overseas markets and to maintain a land bank big enough to support a three- to five-year development pipeline.

Oxley’s fully sold Suites@Katong, Parc Somme and Loft@Rangoon have achieved total sales of $77 million.

Its Viva Vista project is 99 per cent sold while RV Point is 84 per cent sold, with the value of both projects priced at a total of $193 million, the firm said.

Oxley’s shares will begin trading next Wednesday.

Source: Straits Times, 22 Oct 2010

PROPERTY developer Oxley Holdings, which will soon be listed on the Singapore Exchange’s Catalist board, plans to launch another five residential and commercial projects by end-2010.

Chief executive Ching Chiat Kwong told BT that Oxley will roll out freehold projects at Devonshire Road, Holland Road, Kovan Road, Stevens Road and Telok Kurau Road with a total of 338 residential units and 28 shops in all by the end of this year.

He is bullish about the prospects of Singapore’s property market. ‘The (recent) government measures tread a fine line but they are aimed at speculators and to prevent an asset bubble,’ Mr Ching said. ‘The outlook for the property market here is still strong.’

Including the five developments due to be rolled out by the end of this year, Oxley has in its landbank a total of nine residential and residential-cum-commercial sites on which a potential 517 homes and 35 shops can be built.

The property developer also owns a 60-year leasehold industrial site at Ubi Road. It also bought a 21-storey freehold office block at Robinson Road, The Corporate Office, from City Developments for $215 million last month. Oxley intends to redevelop the project in the future.

The company has launched five developments in Singapore since Mr Ching set it up with other investors in 2009. Three of the projects – Suites@Katong, Parc Somme and Loft@Rangoon – have been fully sold. The remaining two, Viva Vista and RV Point, are around 99 per cent and 84 per cent sold respectively.

Yesterday, Oxley launched its initial public offering (IPO), which is the largest to-date on SGX’s Catalist board. The company said it will sell 224 million new shares at 38 cents each to raise $81.2 million in net proceeds. The shares are offered only by way of placement.

The new shares represent 15 per cent of Oxley’s post-IPO enlarged issued share capital.

The company intends to use the proceeds from the listing to partially finance the acquisition of five existing land sites, acquire new development sites for its land bank and for general corporate and working capital requirements.

Mr Ching also said that the company will pay out at least 50 per cent of net profits as dividends for its 2011 financial year (FY), at least 30 per cent for FY2012 and at least 20 per cent for FY2013 to FY2015.

Oxley’s share offering will close at noon on Oct 27 and trading of the shares is expected to start on Oct 29.

Source: Business Times, 22 Oct 2010

PROPERTY developers are widely expected to delay their new launches, now that buying sentiment is likely to be hard hit by the slew of market-cooling measures.

The Government announced new rules on Monday that strongly discouraged speculation on homes, such as extending a seller’s stamp duty from one year to three years.

The measures also require home owners with outstanding mortgages to fork out at least 30 per cent of the purchase price upfront, rather than the 20 per cent that previously applied.

Some industry analysts said yesterday that the changes could dent sales, especially for new launches in the mass-market segment.

DMG and Partners property analyst Brandon Lee said the measures would ‘dampen buying sentiment across all residential segments and cause developers to delay their launches’.

However, he felt that prices were likely to stay firm, due to developers’ strong holding power in view of robust sales and low funding costs.

‘We believe speculative purchases will be curbed, particularly within the mass-mid segment, where small units of low price absolute quantum but higher prices per square foot continue to generate strong take-ups,’ he said.

Property developer City Developments (CDL), which was slated to launch two new projects – NV Residences in Pasir Ris and Copthorne Orchard in Bukit Timah – in the third quarter of the year, said yesterday that the launches will be timed ‘according to market conditions’.

Prior to the announcements, industry watchers had noted that developers were lining up projects for launch after the traditionally superstitious Hungry Ghost Festival ends next Tuesday.

Hoi Hup Sunway was said to be launching the 473-unit Vacanza@East – a freehold project in Lengkong Tujoh in the east, near the Pan-Island Expressway.

And Chip Eng Seng’s Oasis@Elias in Pasir Ris was slated for relaunch at higher prices, after those at the condo rose to about $740 per square foot recently, compared to an average of $670 per sq ft in July last year.

Now, industry watchers are unsure if the launches will go ahead. Many developers may hold off until the effects of the new rules are more certain.

A CDL spokesman told The Straits Times yesterday that ‘as the new measures have just been released, the market will take time to absorb the news’.

OCBC Bank head of treasury research and strategy Selena Ling said that the impact on market sentiment ‘may be significant’, given the array of measures in both the public and private markets.

Given that prices have now exceeded the historical peak set in 1996, she felt the measures were a ‘sobering reminder against further froth in the domestic property market’.

‘The risks are twofold as cited by the Government, namely potential capital losses should growth falter, and higher interest rates,’ she said.

CBRE Research executive director Li Hiaw Ho noted yesterday that the changes ensured that only people with strong cash positions would be able to enter the residential market for investment purpo-ses.

‘Going forward, we expect that developers will be less bullish in their bids for development sites and increases in home prices will be more moderated,’ he said.

Source: Straits Times, 1 Sep 2010

DEVELOPERS took a hit on the share market yesterday following the announcement of new measures aimed at cooling the real estate boom.

It was far from a bloodbath – shares dipped around 4 to 5 per cent although Allgreen Properties dived 7 per cent – but experts are uncertain where the market is headed.

Analysts expect downward pressure on shares to continue in the short term.

Although similar cooling measures have been introduced over recent months, yesterday’s steps are more broad-based and possibly of greater magnitude, said CIMB analyst Donald Chua.

Mr Brandon Lee, an analyst at DMG & Partners, added that much will depend on how the real estate market dynamics play out and how sales fare and markets perform.

Companies like CapitaLand and Keppel Land are expected to be less susceptible to the effects of the measures given their diversified business models and geographic exposure, Kim Eng analyst Wilson Liew noted in a report yesterday.

Real estate investment trusts or Reits with exposure to retail and commercial assets are also expected to fare better.

Market observers note that the new steps can heighten uncertainty about the market’s stability.

Although the measures come across as a ‘mild warning from the Government’, a report from Daiwa Capital Markets stated, if price increases persist, things could be different.

If prices continue to rise by over 5 per cent per quarter, Daiwa expects more ‘severe’ measures could come our way.

On the shares front, Allgreen closed at $1.06 while City Developments, Singapore’s biggest property developer after CapitaLand, slumped 50 cents or 4.18 per cent to $11.46. Wing Tai was down 4.6 per cent to $1.65, while the Ho Bee Group was off 3.77 per cent to $1.53.

Losses were smaller elsewhere. CapitaLand shares dropped just half a per cent to $3.98, Keppel Land kept losses to 2 per cent at $3.85 and UOL lost only 1.26 per cent to $3.93. Luxury property developer SC Global fell 1.25 per cent to $1.58.

Source: Straits Times, 31 Aug 2010