25th July, Wednesday
Residential
UBS forecasts dip in home prices by 10%-15% Source: The Straits Times Residential property prices might fall 10 to 15 per cent in the next 12 months, a new report said. The report said last week that while the market has remained resilient despite the Government's cooling efforts, it is near a tipping point. This forecast is, however, considerably more pessimistic than other experts' views, which mostly predict either stable prices or smaller falls of up to 5 per cent. While UBS acknowledged that tight residential supply and low interest rates are keeping prices resilient, it said other factors point to a more cautious outlook over the next 12 months. For instance, Singapore's economic growth, while still recovering, is more uncertain now. The Government's residential property cooling measures are also likely to continue to discourage foreign buyers and resale market activity. Meanwhile, the population growth rate has also slowed and is likely to decline further given the recent tightening of immigration policy. UBS expects 140,000 to 150,000 homes to be completed from this year to 2015, higher than its estimated cumulative supply shortfall of 90,000 units built up from 2000 to 2011. This mix of negative factors has turned the bank sour on the property market's prospects, leading to its prediction of a 'moderate' 10 to 15 per cent correction. 'We currently see a higher risk for mass-market private homes (versus prime ones) as this segment has largely led the current recovery, and (is likely) the bulk of private residential supply over the next few years,' the report said.
Link to the story: http://www.straitstimes.com/print/Money/Story/STIStory_825827.html
Industrial
JTC launches two industrial sites with 22-year tenure Source: Business Times Two plots of land at Tuas South Street 6 and 7 have been launched for sale by public tender. The two sites, launched by JTC Corporation under the Industrial Government Land Sales (IGLS) Programme, are zoned B2, with a maximum permissible gross plot ratio of 1.0. The first site (Plot 31) at Tuas South Street 6, has a land area of 0.86ha. The second site (Plot 26) at Tuas South Street 7, has a land area of 1.01 ha. Both sites have a lease term of 22 years, in line with the government's effort to make industrial property more affordable, and are targeted at industrialists who need to custom-build their own facilities. Analysts expect the sites to attract up to seven bids, with bids ranging between $80 to $110 per sq ft per plot ratio (psf ppr). "Tenderers for the two sites are likely to be industrialists who find the earlier smaller plots 13, 15, 17 unable to accommodate their full operational requirements, including established industrialists with expansion plans in the short to medium term," said one analyst. "To downplay construction costs, factories with shorter tenure (less than 30 years) are likely to have conventional industrial property design, facilities and minimal amenities," he added. Industrialists can apply for the sites before the tender closes on 4 September at 11am.
Links to the story: http://www.businesstimes.com.sg/print/146128 http://www.channelnewsasia.com/stories/singaporebusinessnews/print/1215399/1/.html
|