S'pore private home prices rise 3.7% in Q1

[Tigersee]

While March is the turning point (i.e. U-turn), May is the time you will see real upward actions (i.e. price upward movement).

Right. Yes UPWARD action when speculators climb high rises to jump off. wooohahahaha. Please keep your eyes UPWARD.

[Unreg¡stered]

U.S. Q1 GDP Growth Stronger Than Forecast
Glenn Somerville
Reuters
Washington, D.C., U.S.


Shoppers cross Seventh Avenue in New York in a file photo. The economy grew at a slightly stronger pace than forecast as 2008 began, helped by inventory-building that tempered a steadily deteriorating housing sector and less vigorous consumer spending. - Photo: Ray Stubblebine, Reuters

A buildup in inventories kept the economy afloat in the first quarter despite the weakest consumer spending since 2001 and the biggest drop in home building in more than 26 years, a government report showed on Wednesday.

The Commerce Department said gross domestic product or GDP expanded at a 0.6% annual rate in the first quarter, matching the fourth quarter's advance and handily topping a forecast for 0.2% growth in an advance poll of economists by Reuters.

Some economists said the report suggested the U.S. economy was on a bit firmer ground than had been thought, but others were still bracing for worse times ahead as businesses ratchet back production further to try to sell off inventories.

"We expect that the coming inventory correction will send growth into negative territory, save a truly heroic effort by the U.S. consumer to spend their way out of the current malaise with their $600 rebates," said Joseph Brusuelas, U.S. chief economist at IDEAglobal in New York.

Tax rebate checks that are part of a government economic stimulus program began to flow this week to upwards of 100 million Americans.

Government bond prices initially dipped on the stronger-than-expected growth figure but later recovered as investors focused on weakening consumer spending. Stocks opened higher.

Separately, ADP Employer Services said U.S. private-sector employers added 10,000 jobs in April, another surprise on the upside since forecasts had been for 60,000 jobs to be lost.

The reports were issued just before Fed policy-makers began a second day of deliberations that is expected to result in a decision to trim official interest rates another quarter percentage point to try to keep expansion going.

Analysts said they still expected a rate reduction.

"This is not going to disrupt things at the Fed today," said economist Pierre Ellis of Decision Economics in New York.

GDP is the broadest measure of total economic activity within U.S. borders and, despite a better-than-expected first-quarter performance, details of the report reflect widespread weakening that many analysts fear will lead to a recession.

The GDP figures are an initial measure of first-quarter performance and will be revised twice in coming months.

The Fed has cut its benchmark federal funds rate by 3 percentage points since mid-September to shore up the economy and calm unsettled financial markets. But many believe the Fed may send a signal at Wednesday's meeting that its rate-cutting campaign is at an end amid signs of persistent rises in food and energy prices.

Consumer spending that fuels two-thirds of economic activity through consumption of goods and services, grew at the weakest rate since the second quarter of 2001, when the economy was last in recession. It rose at a 1% rate after growing 2.3% in the fourth quarter.

The weakening in an already distressed housing sector was even more striking. Spending on residential construction plunged at a 26.7% rate - a ninth straight quarterly decline and the biggest for any three months since the end of 1981.

A buildup in business inventories, which bolsters growth in the period in which it occurs, helped the economy keep growing in the first quarter. Stocks of unsold goods rose at a $1.8-billion annual rate in the first quarter after shrinking at an $18.3-billion rate in the final quarter of last year.

There was a slight moderation in the rate of price rises. Personal consumption expenditures excluding food and energy items - a key gauge of core inflation that is favored by the Fed - rose at a 2.2% rate after increasing 2.5% in the fourth quarter.

A separate report suggested the weakening labor market was keeping labor costs under wraps. The Labor Department said U.S. employment costs grew at a 0.7% annual rate in the first quarter, marking a slight slowdown from the fourth quarter.

The deep housing slump and a related tightening in credit has put the U.S. economy on the ropes and data from the Mortgage Bankers Association on Wednesday suggested the housing market was far from recovery.

The MBA said its index of mortgage application activity dropped 11.1% last week to its lowest level since late December.

Yes! Just keep it positive.

[Unregisterd]

Yes! Just keep it positive.

Pathetic. Can keep 0.000000001%. Also up wat.

[Bull]

India place to be for property. Don't talk about piddly 50% gain. India gain 5-8 times in last 5 years.

[Unreg¡stered]

Pathetic. Can keep 0.000000001%. Also up wat.

You think I care about the US GDP figures?

Can see those idiots who shouted recession during the last 9 months eat their words. Damn shiok!

Don't know anything don't pretend to know and start shouting.

[UNREG]

PM Lee cautions S'poreans to prepare for economic slowdown
By Dominique Loh, Channel NewsAsia | Posted: 01 May 2008 1808 hrs


PM Lee cautions S'poreans to prepare for economic slowdown

SINGAPORE : Prime Minister Lee Hsien Loong has cautioned Singaporeans to be prepared for a slowing economy in the next few quarters.

Speaking in Malay, Mandarin and English at the May Day Rally, Mr Lee told workers that Singapore's economy may have done well so far in 2008, but developments in the US economy may still have an impact on the country.

Mr Lee gave the stark reminder when he joined more than 1,500 workers at Labour Day celebrations.

Mr Lee said the US sub-prime crisis has spread through its banking system and beyond. While the immediate danger is over, there is still the ripple effect.

He painted three scenarios of how the US economy might affect Singapore.

The first scenario is a mild recession but with growth at the end of the year.

Second, if the US problems persist, it'll slow Singapore's growth as well, even going into 2009.

The third scenario is a severe US downturn which most analysts agree is unlikely to happen.

Mr Lee believes the first two scenarios are more likely.

"For this year, we can still achieve a 4-6 percent growth which MTI (Ministry of Trade and Industry) has projected. But remember, the 4-6 percent (growth) is for the whole year. The first quarter was good, (but for the) second, third and fourth quarters, prepare for a slowdown (which) may last into next year. This is one major uncertainty affecting our economy," said the prime minister.

"Employers and workers have to bear this in mind when you negotiate your CAs (collective agreements) this year. You have to ensure that any built-in wage increases are sustainable and if the companies are still doing well, reward the workers with higher variable bonuses, and keep it flexible," he added.

Another concern is the rising cost of living.

Mr Lee said the government had just given out the first instalment of Growth Dividends to some 2.4 million Singaporeans. The second payment is due in October.

Overall, each household can expect some S$5,000 to cope with the rising costs.

On the issue of foreign labour, PM Lee said foreign workers are willing to work longer hours to keep the airport, factories and hotels open 24 hours a day throughout the year. That gives Singapore a more competitive edge, he said, adding that keeping foreign workers away is not the answer.

"It's because we have the foreign workers here, that's why our economy has grown, that's why the employers, ...companies are here, and that's why Singaporeans have jobs. You send away the foreign workers,... a few hundred thousand (of them), Singaporeans (won't) go into those jobs, the companies will close or leave. I think the Singaporeans unemployment will go up, and hardship will go up," said PM Lee.

For those who have difficulty finding jobs, Mr Lee said there are many schemes to help them get employed. For example, the Workfare Income Supplement gave out S$300 million this year, benefiting some 300,000 low-wage workers.

More jobs are also on the horizon, with some 10,000 available at the Marina Bay Integrated Resort. - CNA /ls

TIGHTEN BELTS.

[Unreg¡stered]

You think I care about the US GDP figures?

Can see those idiots who shouted recession during the last 9 months eat their words. Damn shiok!

Don't know anything don't pretend to know and start shouting.

hello !! those jokers who shouted recession have already shut their gaps . they are buying now .

[Unreg]

U.K. House Prices Posted First Annual Drop Since 1996

By Svenja O'Donnell

May 2 (Bloomberg) -- U.K. house prices fell in April from a year earlier, the first annual decline since 1996, after the credit market squeeze prompted mortgage lenders to raise interest rates, a HBOS Plc report showed.

The cost of an average home declined 0.9 percent to 189,027 pounds ($373,082) in the three months through April from a year earlier, the U.K.'s biggest mortgage lender said in a statement on the Regulatory News Service today. That was the first annual drop in HBOS's index since February 1996. Prices fell 1.3 percent from March, when they declined 2.5 percent, the most in 16 years.

[color='red]The report adds to evidence Britain's worst housing slump since the end of the last recession is deepening as lenders tighten credit standards. Mortgage approvals fell to the lowest level since at least 1999 in March and HBOS said faster inflation is making it harder for potential buyers to afford new homes. [/color]

``The decline in prices is driven by a squeeze on spending power and the rapid rise in house prices in the last few years,'' HBOS said in a statement. The mortgage lender said it expects a ``mid-single-digit percentage decline'' in prices this year.

The pound rose 0.5 percent to 77.91 pence per euro today and climbed to $1.9838 against the dollar.

Values in regions such as Wales and the West Midlands may fall more than the U.K. average, while homes in Scotland are likely to record ``modest price rises,'' HBOS said.

Faster Pace

Bank of England policy maker David Blanchflower said April 29 house prices may fall 33 percent in the next three years. While the central bank has cut its benchmark rate three times since December, higher interbank lending costs have prompted HBOS and other mortgage lenders to withdraw their best offers.

``Housing market data have clearly deteriorated at a faster pace over the last few weeks, with lenders continuing to raise mortgage interest rate spreads and cut back on credit availability,'' said Nick Bate, an economist at Merrill Lynch & Co. in London. That's ``raising the risks of a more protracted downturn than we previously envisaged.'' [/size]

Persimmon Plc, the U.K.'s largest homebuilder by market value, on April 24 said it postponed construction on new sites after a drop in sales and an increase in cancellations. Hometrack Ltd. said April 28 it's measure of house prices fell 0.6 percent from March, the biggest decline in more than three years.

Falling Stocks

Property-related stocks have plunged since credit markets seized up in August. Bradford & Bingley Plc, the U.K.'s biggest lender to landlords, has dropped 60 percent; shares of HBOS and Persimmon have both dropped around 50 percent in the period.

Blanchflower said this week his colleagues they need to take ``aggressive action'' to stave off a potential recession. The central bank is expected to keep its benchmark rate unchanged at 5 percent on May 8, according to the median forecast of 30 economists surveyed by Bloomberg News.

The National Institute of Economic and Social Research today cut its growth forecast and now expects the economy to expand 1.8 percent this year, down from the 2 percent it predicted in January. That would match the slowest pace since 1992.

The Bank of England on April 21 offered to help financial institutions by offering to swap government bonds for mortgage securities to boost banks' liquidity. Governor Mervyn King pledged to meet demand even if it exceeds an estimate of 50 billion pounds ($99 billion.)

King said this week policy makers face a ``difficult balancing act'' as they seek to shore up growth, while trying to curb inflation, which he forecast may breach the government's upper limit of 3 percent.

Higher energy and food costs threaten to stoke inflation further. Oil prices have doubled in the last five years, reaching a record $119.93 on April 28. Rice has more than doubled in the past year to a record $25.07 per 100 pounds April 24.

UK EXPECTED TO FALL 33%??? WHAAAAAAAAAATTTTTTTTT????

[Unreg]

hello !! those jokers who shouted recession have already shut their gaps . they are buying now .

The worst recession is on the way. No one is buying. Buyers market already. Go check out with your agent.

[Unreg]

Is it true that many projects put on hold??? Who would have imagined 6 months ago??? Wish I knew when I bought 6 months ago??? Anyway can average out when it drops another 40%.

Yes many projects on hold. No point launching in a slumping market. Wait and you will get good bargains.

[Unreg]

Originally Posted by mr funny
http://www.businesstimes.com.sg/sub/...76166,00.html?

Published April 23, 2008

Landed plots fetch 22% less at URA auction

By EMILYN YAP


LANDED-HOUSING sites at Sembawang were sold yesterday at prices 22 per cent lower on average than nearby plots a few months ago. Yesterday's auction by the Urban Redevelopment Authority was for 11 plots with 99-year leasehold tenure. All were sold - for a total of $45.29 million, or $223 per sq ft (psf) on average.

The plots come under phase two of Sembawang Greenvale estate. URA sold the 12 plots in nearby phase one in October last year for about $285 psf on average. Smaller developers and individuals turned up yesterday to bid for the phase two plots, which can be developed into 90 dwellings - one bungalow, 16 semi-detached houses and 73 terraced houses.

Fragrance Homes reaped the biggest harvest, winning four plots that can house eight semi-detached houses and 40 terraced houses. The largest plot, in Penaga Place, designated for 18 terraced houses across 35,624 sq ft, cost Fragrance $8.7 million or $244 psf. This was the highest psf price for any of the 11 plots.

Odeon Properties' $1.66 million bid for a plot in Kerong Lane represented the lowest psf price of $151. The 10,989 sq ft site can accommodate one bungalow and two semi-detached houses. Reflecting the better market last year, prices on a psf basis in phase one ranged from a higher $210 to $327 psf.

The only individual to submit a wining bid yesterday, Christina Sui Fong Fong, bought the third-largest land parcel for $6.65 million or $221 psf.

Asked about plans to release more landed-housing parcels, URA's director of land administration Choy Chan Pong said: 'We will be releasing according to market demand.'

So what..? Market was up and it will come down ofcourse. But wait...it will go up again in 10 years... whats the big deal?

[Unreg]

Originally Posted by mr funny
http://www.businesstimes.com.sg/sub/...76166,00.html?

Published April 23, 2008

Landed plots fetch 22% less at URA auction

By EMILYN YAP


LANDED-HOUSING sites at Sembawang were sold yesterday at prices 22 per cent lower on average than nearby plots a few months ago. Yesterday's auction by the Urban Redevelopment Authority was for 11 plots with 99-year leasehold tenure. All were sold - for a total of $45.29 million, or $223 per sq ft (psf) on average.

The plots come under phase two of Sembawang Greenvale estate. URA sold the 12 plots in nearby phase one in October last year for about $285 psf on average. Smaller developers and individuals turned up yesterday to bid for the phase two plots, which can be developed into 90 dwellings - one bungalow, 16 semi-detached houses and 73 terraced houses.

Fragrance Homes reaped the biggest harvest, winning four plots that can house eight semi-detached houses and 40 terraced houses. The largest plot, in Penaga Place, designated for 18 terraced houses across 35,624 sq ft, cost Fragrance $8.7 million or $244 psf. This was the highest psf price for any of the 11 plots.

Odeon Properties' $1.66 million bid for a plot in Kerong Lane represented the lowest psf price of $151. The 10,989 sq ft site can accommodate one bungalow and two semi-detached houses. Reflecting the better market last year, prices on a psf basis in phase one ranged from a higher $210 to $327 psf.

The only individual to submit a wining bid yesterday, Christina Sui Fong Fong, bought the third-largest land parcel for $6.65 million or $221 psf.

Asked about plans to release more landed-housing parcels, URA's director of land administration Choy Chan Pong said: 'We will be releasing according to market demand.'

So what..? Market was up and it will come down ofcourse. But wait...it will go up again in 10 years... whats the big deal?

[Unreg¡stered]

WAH SO MUCH FALL SO SOON? TUMBLING DOWN? BETTER INVEST IN RICE.

BOW WOW, you poor desperate fella. Why keep reading old news?
Your news is at least 10 days old.

Go be a farmer. Condo is not for you. You can't afford it.

Record $3,125 psf paid for office building in volatile market
Commerzbank unit buys 71 Robinson Rd for $743.8m
Arthur Sim
Business Times
Tuesday, 29 April 2008

Commerz Real, a fully-owned subsidiary of Germany's Commerzbank, has bought 71 Robinson Road, setting a record in the process and perhaps heralding a new wave of office deals.

The price paid for the building, which was owned by a partnership of Lehman Brothers and Kajima Overseas Asia, was not disclosed by Commerz Real. But sources say it was $3,125 per sq ft of net lettable area (NLA), or $743.8 million. This is 7.7 per cent higher than the $2,900 psf of NLA paid for Hitachi Tower in January.

Lehman/Kajima acquired the building in October 2006 from SingTel for $163.4 million. A year later, the partnership said it would spend about $450 million, including the land cost of $163.4 million, to redevelop 71 Robinson Road into a 280,000 sq ft (gross floor area) building to be completed by mid-2009.

While the selling price represents a healthy capital appreciation, it is understood that the acquisition comes with a coupon payment by Lehman/Kajima to Commerz Real amounting to 4.5% - or about the investment yield for Commerz Real for the duration of construction.

Jones Lang LaSalle (JLL) was appointed by Lehman/ Kajima to market the development in late-2007. JLL managing director (SEA) Chris Fossick said marketing was done globally, with interest from both Singapore and international funds.

In terms of leasing, Mr Fossick said there are no pre-commitments yet but talks are going on with several parties.

Commerz Real was advised by CB Richard Ellis. Commerz Real management board member Hans- Joachim Kuehl said: 'We have seen strong interest from major financial institutions in the development and expect to attract rents in the region of $15 psf.'

The acquisition was made by Commerz Real's real estate fund hausInvest global which also owns 78 Shenton Way, bought in December 2007 for $650 million or $1,857 psf of NLA.

It is worth noting that 78 Shenton Way was sold by a joint venture between Credit Suisse and CLSA funds after they paid $348.5 million for it earlier in the same year.

JLL's Mr Fossick believes this year could see more such assets held by opportunistic funds go to core funds like Commerz Real.

By his reckoning, 2007 saw core funds acquire at least 10 office assets held by opportunistic funds. Larger deals include that by CLSA, which sold the SIA Building to German pension fund SEB.

Mr Fossick believes at least another 13 office assets could be targets for core funds, including DBS Towers 1 and 2. 'We could look back on 2008 and still see quite a lot of transactions despite the global credit crunch,' he said.

A piece of the action
Current opportunistic fund ownersip
Property .......................................... Area* (sqft) . Owner
8 Shenton Way, Temasek Tower ........ 673,713 ......... Macquarie Global Partners
Singapore Power Building .................. 534,323 ......... Pacific Star
DBS Towers I & II ............................ 880,000 ......... Goldman Sachs
Hitachi Tower ................................... 279,655 ......... Goldman Sachs
Chervon House ................................ 262,138 ......... Goldman Sachs
Robinson Centre (61 Robinson Road) . 130,000 ......... Alpha Partners
Samsung Hub .................................. 105,000 ......... HoBee
Samsung Hub .................................. 110,147 (GFA). Buxani
MBFC .............................................. Approx. 1.6M . Cheung Kong + Keppel Land
Bank of East Asia Building ................. 35,000 ........... Asia Equity Partners
Depenso Building .............................. 64,917 .......... KOP
Anson House (72 Anson Road) ........... 76,172 ........... Macquarie Bank
182 Clemenceau .............................. 46,216 ........... Lehman Brothers

[Unreg¡stered]

The worst recession is on the way. No one is buying. Buyers market already. Go check out with your agent.

The market has U-turned since March. People has started buying. Volume has picked up. Go check out with your agent.

[Tigersee]

The market has U-turned since March. People has started buying. Volume has picked up. Go check out with your agent.

Woooohahahahaha. All except you have U-turned and sold and rushed out...wooohahahahahaha. Dead for sure.

[Unreg¡stered]

U.S. Q1 GDP Growth Stronger Than Forecast
Glenn Somerville
Reuters
Washington, D.C., U.S.


Shoppers cross Seventh Avenue in New York in a file photo. The economy grew at a slightly stronger pace than forecast as 2008 began, helped by inventory-building that tempered a steadily deteriorating housing sector and less vigorous consumer spending. - Photo: Ray Stubblebine, Reuters

A buildup in inventories kept the economy afloat in the first quarter despite the weakest consumer spending since 2001 and the biggest drop in home building in more than 26 years, a government report showed on Wednesday.

The Commerce Department said gross domestic product or GDP expanded at a 0.6% annual rate in the first quarter, matching the fourth quarter's advance and handily topping a forecast for 0.2% growth in an advance poll of economists by Reuters.

Some economists said the report suggested the U.S. economy was on a bit firmer ground than had been thought, but others were still bracing for worse times ahead as businesses ratchet back production further to try to sell off inventories.

"We expect that the coming inventory correction will send growth into negative territory, save a truly heroic effort by the U.S. consumer to spend their way out of the current malaise with their $600 rebates," said Joseph Brusuelas, U.S. chief economist at IDEAglobal in New York.

Tax rebate checks that are part of a government economic stimulus program began to flow this week to upwards of 100 million Americans.

Government bond prices initially dipped on the stronger-than-expected growth figure but later recovered as investors focused on weakening consumer spending. Stocks opened higher.

Separately, ADP Employer Services said U.S. private-sector employers added 10,000 jobs in April, another surprise on the upside since forecasts had been for 60,000 jobs to be lost.

The reports were issued just before Fed policy-makers began a second day of deliberations that is expected to result in a decision to trim official interest rates another quarter percentage point to try to keep expansion going.

Analysts said they still expected a ]rate reduction.

"This is not going to disrupt things at the Fed today," said economist Pierre Ellis of Decision Economics in New York.

GDP is the broadest measure of total economic activity within U.S. borders and, despite a better-than-expected first-quarter performance, details of the report reflect widespread weakening that many analysts fear will lead to a recession.

The GDP figures are an initial measure of first-quarter performance and will be revised twice in coming months.

The Fed has cut its benchmark federal funds rate by 3 percentage points since mid-September to shore up the economy and calm unsettled financial markets. But many believe the Fed may send a signal at Wednesday's meeting that its rate-cutting campaign is at an end amid signs of persistent rises in food and energy prices.

Consumer spending that fuels two-thirds of economic activity through consumption of goods and services, grew at the weakest rate since the second quarter of 2001, when the economy was last in recession. It rose at a 1% rate after growing 2.3% in the fourth quarter.

The weakening in an already distressed housing sector was even more striking. Spending on residential construction plunged at a 26.7% rate - a ninth straight quarterly decline and the biggest for any three months since the end of 1981.

A buildup in business inventories, which bolsters growth in the period in which it occurs, helped the economy keep growing in the first quarter. Stocks of unsold goods rose at a $1.8-billion annual rate in the first quarter after shrinking at an $18.3-billion rate in the final quarter of last year.

There was a slight moderation in the rate of price rises. Personal consumption expenditures excluding food and energy items - a key gauge of core inflation that is favored by the Fed - rose at a 2.2% rate after increasing 2.5% in the fourth quarter.

A separate report suggested the weakening labor market was keeping labor costs under wraps. The Labor Department said U.S. employment costs grew at a 0.7% annual rate in the first quarter, marking a slight slowdown from the fourth quarter.

The deep housing slump and a related tightening in credit has put the U.S. economy on the ropes and data from the Mortgage Bankers Association on Wednesday suggested the housing market was far from recovery.

The MBA said its index of mortgage application activity dropped 11.1% last week to its lowest level since late December.

Yes! Just keep it "+".

Recession needs 2 "-" quarters. So far all "+".
Where is the recession?
Guessing again? Making wild assumption again?
Same old story.

[Unreg¡stered]

http://www.straitstimes.com/Prime%2B...ry_232795.html

May 1, 2008

PM upbeat about S'pore economy

He is confident Singapore will be able to weather uncertain global outlook

By Sue-Ann Chia


SINGAPORE is sailing into choppier waters amid uncertainty in the global economy, but Prime Minister Lee Hsien Loong is confident of Singapore's economic prospects.

In his annual May Day message, Mr Lee sketched out the uncertain outlook due to the financial crisis in the United States.

But he maintained: 'However the US financial problems play out, I am confident of our ability to cope...our economic fundamentals are sound and we are in a strong position.'

Buoyant industries such as tourism, construction and marine engineering will buffer Singapore from the effects of a US recession, he said.

The economy is still on track to grow by 4 per cent to 6 per cent this year. The job market is also expected to be full of jobs chasing workers.

'In both manufacturing and services, many vacancies are waiting to be filled,' the Prime Minister said.

Latest job figures released yesterday buttress this point.

They show that a record 68,400 jobs were added to the economy in the first three months of the year, exceeding the 62,500 jobs created in the previous quarter and 49,400 in the same quarter last year.

Still, despite the job boom, the unemployment rate climbed from 1.7 per cent in December to 2 per cent in March.

HSBC Bank economist Robert Prior-Wandesforde attributed this phenomenon to an expanding pool of job seekers, possibly a result of more foreigners seeking jobs here.

In his speech, Mr Lee also urged workers and employers to aim for 'sustainable' wage changes this year, in anticipation of a year ahead that will be 'much more challenging' than 2007 had been.

'Realistic settlements will address the concerns of workers, and yet allow companies to respond quickly to sudden changes in the economic environment,' he said.

For now, the economy is still doing well although 'dark storm clouds have gathered'.

Pointing to the sub-prime mortgage loan crisis in the United States, Mr Lee said: 'We must watch closely how the situation in the US unfolds, and be ready to respond if things take a turn for the worse.'

Addressing the hot issue of rising inflation, Mr Lee said Singapore cannot shield itself completely from this worldwide phenomenon.

But the strong Singapore dollar has helped to maintain the purchasing power of workers' salaries, he noted.

The Prime Minister also assured the people about the food situation here.

Singapore has enough supplies of food, notably rice, and 'we can buy what we need from many sources', he said.

Also, help will be given to those struggling to cope with the higher cost of living.

Relief measures from the Government total $3 billion, ranging in form from tax rebates and Medisave top-ups to the GST offset package and Growth Dividends given to every Singaporean from the last Budget surplus.

The first payout of the Growth Dividends was yesterday, with a second due on Oct 1.

Noting that Singapore's strength is the strong cooperation among unions, employers and the Government, Mr Lee said this enabled them to take a 'rational approach' and act in Singapore's collective best interest.

PM Lee added: 'The external turbulence will put our solidarity under stress.

'But we must not end up arguing among ourselves, or, worse, quarrelling over how to divide what we have, or else we will all be worse off.'

[email protected]

yes, everyone has to work together for a prosperous & strong growth Spore.
Union, employer & govt, work hand in hand, to push for strong GDP, new jobs creation, higher salary, attract new investment & a better living environment.

US$ will easily strengthen 10% in next 12 months, it will resolve some inflation issue, also those use US$ to do business, profit will be higher in coming quarters, we will see strong quarterly result in most listed companies in next few quarters....all these will push for a better share & property price.

[jlrx]

Help! I sense something! Is the market stirring?

A certain calm seems to have returned to the equity markets.

I haven't saved enough money yet for the down payment of my dream strata bungalow!

I want my strata bungalow! I want my strata bungalow!

My dog Millie also needs to live in a strata bungalow so that it can lick my car as I drive out of the carpark under the swimming pool.

Please wait for me! Don't fly away! Please!

[Reuters]

Jobs data lifts U.S. blue chips
Jennifer Coogan
Reuters
New York, New York, U.S.
Friday, 2 May 2008, 4:49 PM U.S. EDT


Traders work on the floor of the New York Stock Exchange, 29 April 2008. - Photo: Brendan MeDermid, Reuters

Stocks made modest gains on Friday after jobs data that offered fresh evidence the economic slowdown is not as severe as feared, but technology shares faded on a surprise loss from Sun Microsystems Inc.

The government's stronger-than-expected April payrolls report helped oil stocks rebound sharply by easing fears about weaker U.S. demand for energy. Adding to the energy rally were higher-than-expected profit from Marathon Oil Corp and Chevron Corp, the second-largest U.S. oil company.

"People are willing to accept the fact that we may have a very slow, stagnant economy, but the prospect of a sharp downturn seems to be less and less likely, hence the sigh of relief," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.

The Dow Jones industrial average was up 48.20 points, or 0.37%, at 13,058.20. The Standard & Poor's 500 Index was up 4.56 points, or 0.32%, at 1,413.90. The Nasdaq Composite Index was down 3.72 points, or 0.15%, at 2,476.99.

For the week, the Dow gained 1.3%, the S&P rose 1.2% and the Nasdaq advanced 2.2%.

Sun, one of the biggest makers of computers used by businesses, sank 22.6% to close at $12.64 after the company late on Thursday blamed the slowing economy for its dismal earnings forecast.

Yahoo Inc's shares helped stem the Nasdaq's losses. Shares of the Internet company rose nearly 7% to $28.67. The company has intensified talks with Microsoft Corp in a last-minute effort to reach a friendly agreement on Microsoft's buyout offer, now worth $42 billion, a source familiar with the matter said. Microsoft slipped 16 cents to $29.24.

The Labor Department said 20,000 jobs were shed last month, marking a fourth straight monthly decline, but the cuts were fewer than the 80,000 which economists surveyed by Reuters had anticipated. The unemployment rate fell to 5.0% from 5.1%.

Oil shares were higher after U.S. crude futures rose $3.80 to settle at $116.32 a barrel.

Marathon shares rose 6% to $50.80 and Chevron rose 38 cents to $95.32. A big gainer in the oil patch was offshore driller Transocean Inc, which rose 4.2% to $151.92.

[AFP]

With modest job losses, U.S. economy defies doomsayers
Rob Lever
Agence France-Presse
Washington, D.C., U.S.
Friday, 2 May 2008, 3:18 PM U.S. EDT


A job seeker searches for employment opportunities in Arlington Heights, Illinois in 2004. The US labor market held up better than expected in April despite fears of an economic slump, with 20,000 jobs cut in the month, the Labor Department reported Friday. - Photo: Tim Boyle, AFP

The US labor market held up better than expected in April, with 20,000 jobs cut in the month, according to data Friday that analysts said signaled a mild economic downturn but not a calamity.

The unemployment rate, based on a separate survey, rate fell a tenth of a percentage point to 5.0%, the Labor Department said.

The report was better than expected by private economists, who on average had forecast a loss of 75,000 jobs and a jobless rate of 5.2%.

"Job losses are way below the recession norm for this point of the business cycle, if this is recession," said Robert Brusca at FAO Economics. "Many things do not really add up for the recession forecasters."

The payrolls report, seen as one of the best indicators of economic momentum, comes amid fears that the world's largest economy may be headed for recession after being battered by a horrific decline in housing and a related credit squeeze. Yet the first-quarter report on US gross domestic product showed a small increase of 0.6%.

Avery Shenfeld at CIBC World Markets said the data still points to economic turmoil, with job declines in key areas such as manufacturing, construction and retailing.

"The report was milder than we thought but some of the details were not quite as encouraging," he said.

"If you isolate the cyclical industries, employment is dropping quite quickly. It's still not a sign the labor market is healthy."

The report showed the economy still hurting from the housing crisis. Construction shed 61,000 jobs and manufacturing lost 46,000.

That was offset in part by a gain of 37,000 in health care, and 27,000 in professional and technical services. The retail sector however lost 27,000 jobs.

Shenfeld said that the sector details show problems: "When you are trying to take the temperature of the economy and where it stands in the business cycle, you look at the cyclical industries like manufacturing, construction and retail."

President George W. Bush said the report was disappointing but expressed confidence in an economic recovery.

"That's not good enough for America. It's positive growth, but we can do better than that," he said of the report during a visit to St. Louis, Missouri.

Bush said the stimulus package anchored on tax rebates will help mitigate economic weakness.

"The good news is, is that we anticipated this. You know, last fall we started to get indications that the economy was going to, you know, slow down," he said.

Stephen Gallagher, economist at Societe Generale in New York, argued that the report suggests a decline for the overall economy but not a meltdown.

"Overall, the modest pullback supports a mild recession or downturn for the US economy," he said. "That is not good news, but the evidence lessens the fears of a deep or prolonged downturn."

On Wednesday, the Federal Reserve cut its base lending rate by a quarter-point to 2.0% in a move seen as further insurance against a deep downturn after a series of aggressive rate cuts since September.

Many analysts say the Fed is likely to pause in its rate-cutting cycle to assess the impact of its earlier actions as well as the 168-billion-dollar economic stimulus package.

Peter Kretzmer, senior economist at Bank of America, said Friday's employment report "will encourage the Fed to pause in its rate cycle, allowing the aggressive easing to date to impact the economy."

Paul Ferley, economist at RBC Capital Markets, said the Fed is still cautious about a soft economy and tight credit conditions.

"Although today's report did not show as great a drop in employment as feared, it is still indicative of labor markets shedding workers during the first four months of the year," he said.

"To help sustain growth beyond this and through 2009, we are assuming that the Fed will lower Fed funds by a further 50 basis points, sending this rate to a near-term trough of 1.50% later this year."

[AP]

Economy shows resilience; jobless rate falls as dollar rises
Economy shows unexpected bounce: Jobless rate declines, dollar shows a bit of muscle
Jeannine Aversa
Economics Writer
Associated Press
Washington, D.C., U.S.
Saturday, 3 May 2008, 2:30 am U.S. EDT


A shopper walks past a business in downtown Blue Island, Ill., Friday, May 2, 2008 with a window sign courting customers. - Photo: AP

The economy showed off unexpected signs of resilience Friday as job losses slowed, the dollar gained a bit of muscle for a change and there were even indications that food prices may be easing. The unemployment rate dipped, though that may not last.

The latest barometers flashed encouraging signs that the economic slowdown may not be as pronounced as some had feared. Still, there's much caution -- about housing, credit and other problems.

"Economic or financial conditions could take an unexpected stumble at any time," warned Stephen Stanley, chief economist at RBS Greenwich Capital.

Employers eliminated 20,000 jobs in April -- not nearly as many as the 81,000 in March, and the fewest monthly losses so far this year, the Labor Department reported. The unemployment rate dropped to 5%, from 5.1%.

Stresses were still evident. It was the fourth straight month that employers cut jobs -- bringing total losses to 260,000.

Many analysts were bracing for much more carnage. Yet, the new figures "can't be taken as a signal that the economy is out of the recession woods," said Nigel Gault, of Global Insight.

On Wall Street, investors initially responded enthusiastically to the employment news, with the Dow Jones industrial average rising more than 100 points, but the market gave back part of that gain and closed up 48.20 points. Investors were keeping their euphoria in check, especially since stocks had already shot nearly 190 points higher on Thursday.

Still, the tone in the market was clearly more upbeat. Thursday's advance came on a growing sense that the economy isn't as wounded from the credit crisis as many people have feared.

Investors were also reassured by the dollar's show of strength this week. The greenback's latest gains have come on expectations that the Federal Reserve is likely to hold interest rates steady -- a trend that makes U.S. assets more attractive to overseas buyers. The U.S. currency rose this week to a five-week high against the euro.

In turn, the dollar's advance has had an impact in the commodities market. Food prices -- such as for wheat and soybeans -- eased. And while oil did rise Friday, that was because of supply concerns rather than moves in the dollar.

"Things are a little brighter," Ken Mayland, president of ClearView Economics, said of all the developments. "The economy is seen as doing a little bit better" and that's contributing to the stronger dollar and calmer food prices, he said.

Another report out Friday showed orders to U.S. factories rose a bigger-than-expected 1.4% in March after two straight months of declines. Higher prices, though, accounted for part of the gain.

Businesses are handing out pink slips as they cope with an economy that is teetering on the edge of a recession, or possibly in one already. A severe housing slump, harder-to-get credit and financial turmoil have forced people and businesses to be more cautious in their spending. And that has hurt the economy.

To help relieve credit problems, the Federal Reserve announced Friday it would boost the availability of short-term loans to commercial banks to $150 billion in May from the $100 billion supplied in April. The goal is to supply a source of cash to squeezed banks so that they'll keep lending.

On the employment front, construction companies, manufacturers, retailers, mortgage brokers and temporary help firms were among those shedding jobs in April. Those losses eclipsed gains elsewhere, including education, health, hotels and motels, bars and restaurants, and the government.

All told, there were 7.6 million people unemployed as of April, up from 6.8 million a year earlier.

Voters are keenly worried about the country's economic problems and so are politicians -- in Congress, in the White House and on the campaign trail.

President Bush expressed hope Friday that the economic-stimulus rebates beginning to reach taxpayers this week will help lift activity. "This economy is going to come on. I'm confident it will," Bush said.

Workers with jobs saw scant wage gains.

Average hourly earnings for jobholders rose to $17.88 in April, a tiny 0.1% rise from the previous month. Over the past 12 months, wages have grown by 3.4%. If the job market weakens in the months ahead, wage growth probably will slow, too, making people even less inclined to spend. That would spell further trouble for the economy.

The new jobs figures come from two different statistical surveys, which can provide -- as in Friday's case -- a somewhat conflicting picture.

The seasonally adjusted overall civilian unemployment rate -- 5% in April -- is based on a survey of 60,000 households. It showed that 362,000 people said they found employment last month, outpacing the number of new people who couldn't find work. Economists tend to put more stock, however, in the much broader business survey of 400,000 work sites that was used to calculate the job loss figure.

To help bolster the economy, the Fed lowered interest rates on Wednesday, but signaled that its rate-cutting campaign could be drawing to a close.

Fed officials and the Bush administration are hoping that the Fed's aggressive rate cuts since September plus the government's $168 billion stimulus package will lift the country out of its slump in the second half of the year.

Even if that happens, economists predict the unemployment rate will climb higher, hitting 6% early next year.

Employers often are reluctant to beef up hiring until they feel certain that a recovery has staying power.

The economy advanced at a snail's pace of just 0.6% in the first three months of this year as people and businesses clamped down on their spending. That marked the second quarter in a row of such feeble growth.

"I think we are in a recession," said Mark Zandi, chief economist at Moody's Economy.com. Even thought the employment news was "encouraging ... it is much too premature to signal that the economic coast is clear."

[CNA]

3M investing US$200m in new facility in Tuas
Channel NewsAsia
Friday, 2 May 2008, 2138 hrs



3M is expanding its operations in Singapore. It is investing about US$200 million in a new manufacturing plant at Tuas.

The new facility will manufacture coatings for film-based products used in commercial, electronic and automotive applications.

3M already has a presence in Singapore - helping to augment its worldwide offering of 50,000 products, including post-it pads and scotch tapes.

The new facility in Tuas will focus on the production of a wide variety of specialty films.

These advanced coatings, which are designed to keep out heat, will help reduce air-conditioning loads for both cars and buildings.

Lee YiShyan, Minister of State, Trade and Industry, said: "3M told me that this is the largest overseas plant they (have) ever built, so we are very proud of this partnership.

"When completed in 12 months, it will be one of the superhub plants. It'll also bring in a lot of very high-tech quality, high value-added jobs for Singaporeans."

The new facility will also serve to boost 3M's research and development capability.

Jay Ihlenfeld, Senior VP, Asia Pacific, 3M, said: "We'll develop prototypes ... (for) our customers and then scale those new products up into full production on this site.

"We also see, as the future goes forward, expanding the capabilities and the different technologies that we practise on this site to create the innovative products that the customer expects from us."

The new facility will create about 250 jobs. 3M currently employs more than 900 employees in Singapore. Apart from the plant in Woodlands, it also has a customer innovation centre here.

[The Sunday Times]

Up to $150,000 for guaranteed place at Canadia school
Jane Ng
The Sunday Times
Sunday, 4 May 2008

Another international school has announced that it will guarantee places for students in return for up to $150,000, making it the third school to embrace hefty placement fees.

The Canadian International School is hoping to tap into the growing number of companies looking to secure places in good schools for the children of expatriate employees.

8% of the places at the school will be available under this scheme. It currently has about 1,700 students and will increase the numbers to more than 2,000 by August.

Principal Glenn Odland said the plan was a 'response to market conditions'.

'This programme is designed to allow corporations or individuals, who need to be able to guarantee places for students, to purchase such a guarantee,' said Dr Odland.

This would make it easier for firms to hire senior-level executives who have children of school-going ages.

For corporations, the price of a guaranteed place is $150,000 for the first child and $130,000 for the second.The scheme is open to individuals as well, at $100,000 a child.

The school joins the United World College (UWC) of South-east Asia and Tanglin Trust School, which earlier announced similar plans.

The rising expatriate population is causing a squeeze on places in international schools. The number of foreigners here went up from 798,000 in 2005 to 875,500 in 2006.

Many international schools report long waiting lists.

The Canadian International School has received 30% more applications than there are spaces available for its August intake.

The UWC has 1,000 on the application list for its interim Ang Mo Kio campus, which can take in 440 students, and the average waiting time for its Dover campus is four years.

A Tanglin Trust School spokesman said about 80 of 2,250 places at the school will be taken up by the guarantee scheme, which was launched in January.

The places have been bought by both individuals and companies, and the school has no immediate plans to increase the number of spots.

The UWC, whose guaranteed places are sold only to companies, declined to reveal the exact number of places taken up and would say only that it was 'very pleased with the general level of interest and uptake of the scheme. Demand has exceeded our expectations'.

Not all parents are going for such a scheme though; some are just joining the waiting list early.

Mr Niraj Parekh, 31, an investment banker, registered his then two-month-old daughter Isha at the UWC in November last year. He said it was a matter of being practical.

'The school said it's a first-come-first-served situation, so we take comfort in the fact that we're doing the best that we can for our daughter,' said Mr Parekh, whose spouse Rashmi is a housewife.

Isha will enter the school in 2012 when she turns five.

[Unreg¡stered]

Wah! The 999LH Aston Residence at Jalan Loyang Besar is hot man!

Launched during last Saturday, 26 April 2008, 10 of these 28 strata bungalows have been snapped up. They cost between $2.68M - $2.75M each.

.. you know Ambrosia??
.. the penthouses all snapped up recently ..

.. people are very rich ..
.. money is not an issue ..

URA reports 2 units of the 15-unit Shelford Suites sold in March at record prices for the Shelford area - $$1,869psf and $1,905psf.

March is the U-turn point.

It's not that "people are very rich".

It's that the rich people are getting richer and richer. So proportionately, the cost of the homes they buy becomes relatively more affordable.

I can't imagine now even places like Loyang at Pasir Ris are selling for $2.68 m to $2.75 m.

Looks like my dog Millie will never be able to stay in any form of bungalow, whether strata or otherwise.

So I have no choice but to use my imagination again. Below I imagine I'm staying at Aston Residence and that's my dog Millie licking my car as I drive out of the driveway which goes under the pool.

That sounds familiar doesn't it? Another Strata Bungalow Chateau La Salle also has the same concept. Somehow I feel Chateau La Salle looks nicer. More European style and cosy, but also costs more - $3.3 million.

Went to Aston Residences on 1 May 2008. Another 3 sold.

Wow! Selling like hot cakes at $2.7 million each!

I think these landed/strata bungalows are usually bought by end users rather than speculators.

The window of opportunity of ever owning a bungalow in Singapore is fast disappearing.

I think it is now or never.

I'm afraid that the future divide is not going to be between the high earners and low earners, but between the bungalow dwellers vs the rest of the population.

Looks like I'm going to be on the wrong side of the divide, and my poor dog Millie.

suddenly so many good news on property sale, seem like market slowly picking up. Once trigger the buying spree, buyers will start to chase after all available property.

Mass market floor is $520-550, high high market also moving fast in March.

No wonder property counters performing so well recently, supporting STI index compared to other sector like Oil & Gas.

Let see when govt announced master plan for Spore in May, can it trigger like last year surging market.

Todate, 19 of the total 28 units of Aston Residence have been sold within 2 weeks of launch.

This is 68% sold within 2 weeks.

The buyers are back and they are back to buy!

[millie2]

My dog Millie also needs to live in a strata bungalow so that it can lick my car as I drive out of the carpark under the swimming pool.

cute dog millie

[jlrx]

Todate, 19 of the total 28 units of Aston Residence have been sold within 2 weeks of launch.

This is 68% sold within 2 weeks.

The buyers are back and they are back to buy!

cute dog millie

Dog is cute but cannot stay in a strata bungalow because poor owner does not have enough money.



Actually when I look closer, this Millie looks more like a hedgehog than a dog.

[APR]

Singapore’s apartment rentals jump 33%
Asia Property Report
May 2008

Singapore has now become the 5th most expensive place to rent in Asia, and 9th worldwide. This is according to a survey by HR solutions provider ECA International, which added that residential accommodation rental rates for a three-bedroom apartment have increased 33% from last year – the highest year to year percentage increases in Asia followed by Mumbai and Guangzhou.

“The demand for high-end accommodation has risen, driving up rental prices, which can be partly explained by companies expanding their operations in Singapore together with government initiatives to attract skilled workers from overseas,” Lee Quane, General Manager, ECA International Hong Kong, explains. “But at the same time, the supply of property available has been limited by a number of factors such as en bloc purchases by developers, which has exacerbated the situation.”

However, it is still less than half the rental cost of an equivalent property in Hong Kong, the survey’s most expensive location. In Tokyo, the 2nd most expensive Asian location, a three-bed apartment costs over 60% more to rent than in Singapore.

Six of the top 10 most expensive locations in the world are in Asia, with Mumbai (6th), Seoul (7th), Singapore (9th) and Ho Chi Minh City (10th) joining Hong Kong and Tokyo.

“On average, rental prices in Asia are approximately US$3,820; well above the global average of US$2,950. A robust economy and increased demand for high-end accommodation have been instrumental in driving rental prices up,” Quane adds.

[APR]

Singapore’s March launches hit 7-month high
Robert Carry
Asia Property Report

The number of developments launched in Singapore during March 2008 was the highest in 7 months, the city state’s Urban Redevelopment Authority (URA) has revealed.

Despite the fact that concerns about global real estate market slowdown have been circulating for some time, developers in Singapore have remained bullish amid continuing strong sales. According to a statement released today by the URA, “total island-wide new launches and take-up for non-landed properties in March rebounded from the February low, recording the highest level of new launches in 7 months”.

A total of 632 units were launched in March, some 84.3% higher than in February. Similarly, 293 units were sold in March a figure 79.8% increase from February. According to the URA, the rise suggests “a potential strengthening of developers and buyers sentiments island-wide.”

[APR]

Market hints at recovery
Asia Property Report
May 2008

There are signs that buyer sentiment in the property market may be improving. According to the Urban Redevelopment Authority (URA), the number of private homes sold in March leapt 80% from February.

Developers were even more positive, having launched more than 600 units for sale in March – about 85% more than the month before, and the highest in 7 months. However, taken as a whole, the first quarter was the worst since 2003. A total of 301 residential units, excluding executive condominiums, were sold last month, according to data released yesterday by the Urban Redevelopment Authority. In February, 174 units were sold.

Most of the increase in sales came from the high-end market where sales skyrocketed 80%, compared to the 31% jump in suburban region sales. “Developers’ sentiments on the mass market far exceeds the buyers’ expectations, which is evident in the number of launches and also the recent strong biddings in the 3 Government Land Sales site at Simei, West Coast Crescent and Yishun. Contrary to developers’ optimism, buyers maintain a more cautious outlook of the market as the economy is expected to ease in the next few months, despite having a strong projection of GDP at 7.2% in Q1 08,” Dr Chua Yang Liang – local director and head of research, South East Asia, Jones Lang LaSalle noted.

Prices also rose from 170.8 points in Q4 2007 to 178 points in Q1 2008. This represents an increase of 4.2%, compared with the 6.8% increase in the previous quarter. Further, rrices of non-landed private residential properties increased by 4.4% in the Core Central Region, 3.9% in the Rest of Central Region and 4.8% in the Outside Central Region in the same quarter.

[The Straits Times]

Middle East investors 'looking to Southeast Asia'
Nicholas Fang
The Straits Times
Monday, 5 May 2008

Middle Eastern investors are increasingly looking to Singapore and other South-east Asian nations for deals as financial ties grow between the two regions.

So says Standard Chartered (Stanchart) Bank's group head for origination and client coverage, Mr V. Shankar.

Stanchart is well-positioned to become a leading player in this area. In the past year, it has advised on more than 40% of the deal flow from Middle East to this region, which totalled US$8 billion (S$10.9 billion).

The figure was up from the US$987 million in the 12 months preceding, and Mr Shankar believes it will continue to rise in the years ahead.

'The financial ties between the Middle East and Asia are strengthening by the day and we are seeing more East-East relationships being formed,' he said in a recent interview.

'Oil and natural gas from the Middle East are vital for China, Japan and all the fast-growing markets in the Asia-Pacific region, which are fast ramping up their infrastructure.

'And the oil-generated capital and liquidity in the Middle East are fuelling a search for investments with high returns.'

Mr Shankar added that a recent report by McKinsey estimated that Gulf countries would have US$9 trillion to invest by 2020.

Stanchart began boosting its presence in the Middle East three years ago and now has a team of 50 corporate advisers there.

Mr Shankar, who is also a member of Stanchart's group management committee, said this put the bank in an enviable position as Singapore's business with the Gulf looks set to soar.

'Between 2004 and 2006, total trade between Singapore and the Middle East shot up from US$20.9 billion to US$30.8 billion, an increase of 47 per cent.

'Currently, Singapore companies are working on more than $6 billion worth of projects in the Middle East.'

Stanchart is no stranger to deals between the Republic and Gulf countries. It recently advised the Al-Futtaim group in its successful bid for Singapore's oldest retailer, Robinson & Co.

Looking ahead, Mr Shankar said the bank would leverage on its experience and capabilities in the region to shore up its position as a major player.

'Stanchart is well-placed to seize future opportunities, thanks to our growing geographical reach and the scale and breadth of our products and capabilities.

'We have an established history in Singapore, having been in the market for 150 years, and we have been operating in the Middle East for more than 50 years. We feel we can act as a strong local bank in all the different markets for our clients.'