Govt acts to curb speculators
A series of sweeping measures designed to take the heat out of the booming property market and rein in investors and speculators were announced yesterday. The restrictions, like cooling measures last September and in February, are designed to stop a housing bubble forming. They target owners who try to sell - or flip - their properties for a quick buck, while those aiming to buy investment properties in addition to their existing home will find it far more costly. The new rules - which came in yesterday - also make it harder for Housing Board and private home owners to dabble in each other's markets. Property experts believe the new rules will hit sentiment instantly, with buyers likely to hold back while prices of private homes and resale flats stabilise or even fall over the longer term. But first-time buyers will have reason to celebrate, as they may find fewer potential buyers competing with them and, possibly, softer prices. The Government is also bumping up the supply of public housing, including executive condominiums. Cash-over-valuation levels in the HDB resale market are expected to dip, thanks largely to the huge upcoming supply of flats and a move barring private home owners from buying a resale flat while holding on to their private property. Property share prices fell by about 4-5 per cent in reaction to the changes.
- The Straits Times, A1

Far East launches Novena Specialist Center
Far East Organization yesterday released for lease 31 out of the 69 medical suites at its upcoming Novena Specialist Center. Ranging in size from 549 to 1,442 square feet, they will be rented out for $8-9 per sq ft (psf). Novena Specialist Center is part of a $350 million hotel and commercial complex the developer is building. Besides the 69 suites, the project will also house a 428-room Oasia Hotel. Far East is upbeat on the prospects of Novena Specialist Center, which will be ready by January 2011. The centre is next to Far East's existing Novena Medical Center, which was completed in 2007. That development has 145 suites. So far, 100 medical suites have been sold, while another 35 have been let for $8.50-10.50 psf. 'With the increasing number of international patients coming to Singapore for treatment and check-ups and a growing local population, demand for medical services will increase. This translates to a rising need for medical suites,' said Far East's executive director GL Yap. The number of medical tourists coming to Singapore has climbed from about 200,000 in 2003 to 646,000 in 2008. But the supply of purpose-built medical suites has not kept up with demand, Mr Yap said. 'Occupancy at these facilities has stayed at near-full level since 2004,' he said. 'And leasing rates have doubled across the board now. This shows there is still pressure to satisfy this need and increase Singapore's medical services capacity to serve demand from the region and the resident population.' Mr Yap said the Novena medical cluster has attracted a lot of interest from groups that plan to expand their networks of clinics and doctors who intend to set up their own private practice.
- The Business Times, P9
- Also quoted in The Straits Times, B21, “Far East may build private hospital”.

The attractiveness of Asian real estate (The Business Times, 19 May 2010)
Post-recession, international property investors are turning their attention to Asia in pursuit of new investment opportunities. Today, we are seeing a growing trend of institutional and private investor capital flowing into the region's real estate markets. Investors are lured by the underlying economic growth, stable yields, expansion of diverse market segments, as well as the need to broaden their investment portfolios. The average Asian has a higher propensity to save compared to their Western counterparts and given the current low yields on fixed income products and the high volatility of equity markets, this presents a strong motivation for Asians to be attracted to the relative value-benefits of real estate investing. In addition, succession planning is often a key factor in investment decision-making in Asia where family-controlled businesses are prevalent. The current climate has encouraged many to invest in property markets, which can allow for a more orderly transfer of assets and wealth from one generation to the next.
- The Straits Times, B29

Asia may continue to lead global recovery (Asia-Pacific Regional Economic Outlook, 19 May 2010)
Mr Anoop Singh, director of the IMF’s Asia Pacific Department wrote that Asia will grow by 7 per cent this year and next, buoyed by growth in China, India and other countries. Singapore is a case in point. The economy has rebounded strongly from the recession, benefiting from the turnaround in global trade and financial markets as well as forceful counter-cyclical policies. It is now firmly on a recovery path, although the external environment remains key to near-term prospects. In the near term, Asia will continue to lead the global recovery. The recovery of demand in advanced economies, particularly the United States, is expected to fuel a re-stocking of inventories through most of 2010 that will boost Asian production and exports. Against this backdrop, monetary, fiscal and macro-prudential policies are appropriately aimed at curbing risks in the goods and asset markets - and exits from the extraordinary policy support of yesteryear are underway. Capital inflows, which returned only slowly following previous downturns, are now surging into the region. These capital inflows partly reflect the extremely high levels of global liquidity, but are also a testament to Asia's improved resilience and growth prospects.

Prices of high-end residential properties expected to rise by about 3 to 5% (Knight Frank - Q1 2010 Real Estate Highlights)
2010 commenced on a positive note for the private residential market, where launch and sales activity in the primary market revived. 4,445 units were sold in the primary market in 1Q 2010 – exceeding the 4,375 units launched in 1Q 2010. The number of foreign homebuyers for private residential properties in 1Q 2010 remained similar to that in 4Q 2009. The share of foreign homebuyers maintained at 27% of all private residential home transactions in 1Q 2010. At 27%, this was among the highest share of private residential transactions, which foreigners accounted for in each quarter. Malaysians continued to pick up the largest number of homes in 1Q 2010, with 394 transactions. Indonesians accounted for the next largest share, of 17.8%. Prices of high-end residential properties are expected to rise by about 3 to 5% in each of the forthcoming quarters in 2010, bringing prices of high-end residential properties by end 2010 to be comparable with the all-time high seen in 2007. Prices of suburban private residential properties are expected to be fairly stable for the rest of 2010 and increase by 1 to 2% for each of 2Q to 4Q 2010. The opportunities for rental recovery of private residential properties in 2010 arise from positive economic conditions and a larger tenant base. Rents of private homes are expected to improve by 5% to 10% for 2010. The potential for a rental growth in 2010 is also likely. The rental recovery in 2010 will be underpinned by an active leasing market, where a brighter economic prospect encourages businesses to incrementally hire more expatriates.

5-15% growth in prices is  expected for 2010 with the higher-end segment (DTZ - Property Perspective Q1 2010)
Total home sales in Q1 2010 was 10,032 units sold, reflecting a quarter-on-quarter growth of 51%. Among non-landed private homes, the luxury segment experienced the highest increase in average price as it climbed by 4.2% to $2,500 psf - 10.7% below the 2007 peak. Outside the prime districts of 9, 10 and 11, the average price of leasehold non-landed resale homes increased 2.1% in Q1 2010 to $623 psf. The average price of landed freehold homes in the prime districts increased by 5.7% to reach a new high of $1,529 psf in Q1 2010. The outlook for the residential market is positive, as demand is fuelled by positive sentiment from the improving employment market, projected strong full year GDP growth of 7-9% and the low interest rate environment. A 5-15% growth in prices is therefore expected for 2010 with the higher-end segment having stronger upside.

S'pore No.1 in competitiveness (IMD World Competitiveness Yearbook 2010)
Singapore has jumped ahead of Hong Kong and the United States to snatch the top spot in a closely watched global ranking of economic competitiveness. The Republic edged ahead of its rivals to assume pole position for the first time in what the compiler of the annual rankings, Swiss business school IMD, is calling a photo finish. The gap between the three in this latest assessment of the world's economies - which places Hong Kong second and the US third - is less than 1 per cent. IMD said Singapore and Hong Kong 'displayed great resilience through the crisis... and are now taking full advantage of strong expansion in the surrounding Asian region'. It was particularly impressed with Singapore's 13 per cent growth in the first quarter of this year.

Private home prices continue upward climb (The Straits Times, 24 April 2010)
Prices of private homes are still heading north with values shooting up 5.6 per cent for the first quarter. The rise for the three months to March 31 was below the 7.4 per cent increase in the fourth quarter of last year, according to the URA. Detached homes were the star performer in the first quarter, rising 9.6 per cent, up from the 7.9 per cent climb in the previous quarter. Overall, the landed homes segment rose 8.3 per cent, after a similar rise in the fourth quarter last year. Non-landed home prices rose by 4.9 per cent. Since the second quarter last year, landed home prices have risen 35 per cent. City centre non-landed homes - the only sector where prices have yet to cross the 2008 peak - rose by 3.3 per cent in the first quarter. Prices in the city fringes and suburban areas increased by 7.9 per cent and 4.3 per cent respectively. In suburban areas, prices of uncompleted homes rose more than prices of resale homes as some developers have set benchmarks for new launches. While prices are still rising, they are now supported by rising rents. First quarter rents jumped by 4.7 per cent compared to a 0.6 per cent climb in the previous quarter, which followed five quarters of decline. The resale market was also active, with 4,261 units transacted, up 6.5 per cent from the previous quarter. In the first quarter, the 806 sub-sales accounted for 8.5 per cent of total sales.