Singapore CPF members earn $6b in paper profit

Singapore CPF members earn $6b in paper profit

Substantial gains made by those who invested in gold, reports GENEVIEVE CUA

THANKS to strong markets for the most of last year, Central Provident Fund members are sitting on paper gains of roughly $6 billion in aggregate value in ordinary and special accounts, according to the latest profit and loss statement for the CPF Investment Scheme.

The data tots up members’ historical entry price against the assets’ respective market values for the CPF’s fiscal year up to Sept 30, 2007. The data gives a broad idea of how members have fared, but there is no indication of for how long each investment has been held.

The most substantial gains in percentage terms were achieved by members who invested in gold, with unrealised gains of as much as 57.1 per cent. The second most rewarding was property funds, which reflected paper gains of 50.77 per cent. Gold, however, is subject to a 10 per cent investment limit. This gives it almost the smallest share in members’ investment accounts on an aggregate basis. Property funds are subject to a 35 per cent investment limit, which also applies to stocks in general.

Yesterday CPF officials briefed the press on the progress of steps taken to raise the quality of funds in the CPFIS and to lower the investment costs. The number of funds in the scheme has steadily declined from 444 as at the fourth quarter of 2006 to 387 as at January - a drop of about 13 per cent.

The CPF’s new measures, which include a requirement for a three-year track record, top quartile performance, and a cap on expense ratios, were implemented for new funds seeking inclusion in the CPFIS from February 2006. From January this year, all funds have to comply with prescribed expense ratio caps. Those which are unable to comply will not be allowed to take in new CPF money.

To distinguish between those companies that are able to satisfy all the requirements including the expense ratio cap, CPF has created a list of the qualifying funds, called ‘List A’. There are currently 46 funds in List A. Another 30 top quartile funds are as yet unable to meet the expense ratio criteria and are put in List B, along with the rest.

The distinction between lists A and B, however, remains a point of contention among a number of fund managers, as Executive Money gathers. One fund manager says: ‘Some fund managers do not want to continue to be in the CPF market any longer. They are being asked to try to curb funds with high expenses, but people want to invest in them as they do give you performance. People should still be given that choice.’

The expense requirement is also awkward for funds with a performance fee structure. Ironically, a strong year of outperformance could result in the fund being closed to new money as the effective fees would shoot up.

Does a presence in List A draw investor interest? Another fund marketer is uncertain. ‘The distinction between List A and B is in its infancy. I have had some funds in List A and others which are in List B,’ he said.

CPF assistant director (investments) Wu Meei said it is possible that more funds may drop off the scheme. ‘That depends on their commercial decision,’ she said.

While the lion’s share of CPF savings continues to be invested in insurance-linked products, the amount invested in unit trusts has just exceeded that in stocks - by a tiny margin. As at the third quarter last year, $4.5 billion was invested in unit trusts, compared to $4.47 billion in shares.

In terms of performance, however, investment-linked policies (ILPs) registered a paper gain of 36.97 per cent against historical costs, compared to 17 per cent for unit trusts, and 27.67 per cent for shares.

As the underlying asset classes for ILPs and unit trusts are similar - a number of ILPs in fact feed into unit trusts - one reason for the differential in unrealised gain could be behavioural. Investors in insurance policies are said to be less likely to trade their funds. They are also more likely to be invested in balanced funds.

As for those who realised their investments in the fiscal year ended in September, 28 per cent made net profits after bank charges and in excess of the CPF Ordinary Account interest rate, compared to 23 per cent in 2006. The proportion with realised losses, however, remained substantial at 43 per cent.

During the period under review, the SES All Index gained 52 per cent, and the STI 44 per cent. The MSCI World Index gained 19 per cent.

CPF also briefed the press yesterday on the progress of initiatives to encourage members to defer withdrawal of their savings in retirement. As part of measures announced last year, savings of $60,000 in combined CPF balances will earn an extra 1 per cent in interest. The drawdown age is also to be raised progressively.

To help members between 50 and 57 cope with the later drawdown age, CPF will pay a one-off ‘D-bonus’ in May. Some 105,000 letters will be sent out this week to members who were 55 to 57 in age last year.

There is also a ‘V-Bonus’ or voluntary bonus to encourage members to voluntarily defer their drawdowns to age 65. Of the 10,123 members who turned 63 or 64 between January and February this year, 75 per cent - 7,583 - have deferred their withdrawals.

Source : Business Times  - 30 Jan 2008

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Drew & Napier tops ranking of law firm employers- Singapore

Drew & Napier tops ranking of law firm employers- Singapore

By CHEW XIANG
DREW & Napier is the top employer among local and foreign law firms in Singapore, according to a survey by Asian Legal Business (ALB) magazine.
Home-grown giant Allen & Gledhill came in third in the overall rankings. Foreign firm Linklaters took second place, while Baker & McKenzie was fourth. Clifford Chance and Allen & Overy were joint fifth.

The magazine polled 20,000 lawyers across 13 jurisdictions in the Asia-Pacific. Firms were then scored on six categories, including financial rewards and work-life balance. The magazine also spoke to consultants and ex-employees of the law firms.

ALB managing editor George Walmsley said: ‘The difficulty of attracting and retaining legal talent … has been a recurring theme across Asia for some time now. We find it fascinating how the dearth of talent, whether caused by somewhat out-of-date legal training regimes or sheer pace of demand growth can change the whole shape of the legal services industry.’

ALB quoted Sandra Godbold of recruitment firm Hays as saying ‘it generally only takes one or two key people to take the lead and move firms to … encourage larger numbers of lawyers to follow.’

‘This is particularly true in the Asian legal market where lawyers move far more frequently than they do in Europe and the US.’

And in Singapore, the main motive in moving seems to be money. The report said that lawyers here and in mainland China sought the best compensation when choosing a new firm. However, Latham & Watkins, voted No 1 in Singapore for financial rewards, failed to make the top five in the overall rankings here.
Source : Business Times  - 30 Jan 2008

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VivoCity eyeing first Singapore Tourism Award

VivoCity eyeing first Singapore Tourism Award

IT’S a battle between the newcomers and the stalwarts in this year’s Singapore Tourism Awards. VivoCity, which opened in December 2006, will vie for the ‘Best Shopping Experience - Shopping Mall’ category alongside the more established Paragon and Wisma Atria. The category was revived for this year’s awards after a two-year break from the scene.
VivoCity deputy general manager Chang Yeng Cheong felt that the mall has an edge over the other finalists in terms of its size, new brands, as well as ‘good amenities’.

The ‘Best Nightspot Experience’ category, on the other hand, saw two first-time finalists - The Butter Factory and St James Power Station - up against last year’s winner, Ministry of Sound, and Zouk, which won the award in 2005. St James also has two staff members as finalists in the ‘Best Tourism Host - Nightspot’ category.

Other fresh faces include CHNG Kee’s Spice of Life, Franck Muller Boutique, iwannagohome! and Giordano Concepts, which are up against one another in the ‘Best New Retail Concept’ category.

The annual Singapore Tourism Awards, organised by the Singapore Tourism Board, honour individuals and organisations that provide excellent service and products for the tourism industry. About 35,000 nominations for the 22 categories were received through public votes for this year’s awards. Judging panels then shortlisted the nominees based on each category’s criteria, visiting the shortlisted nominees for first-hand service experience.

The winners will be announced next Tuesday.

Source : Business Times  - 30 Jan 2008

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Singapore Condo site facing reservoir launched

Singapore Condo site facing reservoir launched

By KALPANA RASHIWALA
THE Housing & Development Board (HDB) has launched the tender for a 99-year-leasehold site at the corner of Yishun avenues 1 and 2 that fronts Lower Seletar Reservoir and is near Singapore Orchid Country Club/Golf Course.
The plot, which is about 10 minutes’ walk from Khatib MRT Station, is expected to fetch bids in the range of $200-$300 per square foot (psf) of potential gross floor area, property consultants say.

The 2.7 hectare site has a 2.1 plot ratio, allowing a maximum gross floor area of 609,163 square feet, enough for a condo with about 500 apartments averaging 1,200 sq ft.

CB Richard Ellis executive director Li Hiaw Ho said that a condominium on this site would be able to enjoy scenic views of the reservoir and golf club.

As the suburban market is expected to strengthen this year, Mr Li expects the site to draw keen interest from developers.

‘Demand is likely to come from Housing & Development Board flat upgraders and people who work in the northern part of Singapore. Units in Orchid Park Condominium nearby are being sold in the secondary market at around $550 psf, while new freehold units in the vicinity such as The Sensoria and Northwood were sold at prices ranging from $600 psf to $650 psf.

‘Based on a selling price of $600 psf to $650 psf, it is expected that the tender bids for the site will range from $200 to $240 psf per plot ratio.’

Credo Real Estate managing director Karamjit Singh places the fair value of the plot even higher, at $280-$300 psf ppr, and reckons that the top bid may surpass that, given the plot’s attractions. Assuming this higher price range, the breakeven cost for a new condo would be around $600-$610 psf and the project is likely to command an average price in the high-$600 psf range, he added.

The tender closes on March 25. It is part of the confirmed list, under which the government launches land parcels for tender according to a pre-stated schedule regardless of demand.
Source : Business Times  - 30 Jan 2008

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Singapore only nation with high growth, job creation

Singapore only nation with high growth, job creation

Lim Swee Say cites Economist report; NTUC to help 8,000 unemployed workers get jobs
By CHUANG PECK MING

SINGAPORE was the only country in the world to post high economic growth and low unemployment in 2007. The labour movement here wants Singapore to at least keep up with this achievement in 2008, as it unveiled its work plan yesterday for the new year.
Despite global uncertainties and the threat of a recession in the United States in 2008, Lim Swee Say, secretary-general of the National Trades Union Congress (NTUC), said that the strong economic gains made in the past few years have built up a healthy pipeline of jobs to provide some buffer against a global downturn and carry workers through the year.

He noted that Singapore has continued to take in foreign workers, indicating that there are more than enough jobs to go around for all.

‘We are in a much better position than many countries,’ Mr Lim told reporters at a press conference.

Earlier, in an address to unionists, the NTUC chief cited a study reported in The Economist, which showed that out of 56 countries, including fast-growing economies like China and India, Singapore was the only one in 2007 to have achieved high economic growth and created enough jobs for its workers.

China, which probably chalked up the world’s highest economic growth of 11.5 per cent in 2007, has an unemployment rate of 9.5 per cent. Some 25 countries, among them India, Indonesia, Malaysia, Hong Kong and South Korea, fell into this category of high growth but insufficient jobs last year.

Another 25 countries, including the United States, Japan, Germany and Taiwan, were marked by low economic growth but high unemployment. Five countries, among them Norway, Thailand and Switzerland, while low in economic growth, were able produce plenty of jobs.

‘Singapore did exceedingly well in 2007,’ said Mr Lim who is also Minister in the Prime Minister’s Office.

On the labour union front, he ticked off the lowest number of lay-offs since 1993; a sharp drop in worker grievances; the biggest pay rise in three years; and a 17-year-high bonus of 4.42 months’ salary.

According to Mr Lim, to help keep unemployment low this year, the NTUC will work closely with the government and employers to find work for some 8,000 jobless workers, up from 7,757 in 2007.

Through various employment-help programmes like Job Re-Creation, Place and Train and Careerlink, the labour movement hopes to place some 7,000 unemployed.

It will also help another 1,000 mature professionals, managers, executives and technicians under the Professional Conversion Programme to shift to new careers in logistics, tourism and call centres.

The NTUC also wants to raise the employment rate through re-employment, re-deployment and back-to-work initiatives. Specifically, it wants to help mature Singaporeans to stay employed; workers hit by business restructuring to keep their jobs; and housewives who want to return to work.

In all, the NTUC is setting its sights on 8,000 Singaporeans in this category, up from 4,311 in 2007.

Lastly, the labour movement wants to extend its help to those who are under-employed - those working but earning low pay. It will help them boost their skills and secure better jobs and better pay.
Source : Business Times  - 30 Jan 2008

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Straits Trading bidding war will be test for OCBC - Singapore

Straits Trading bidding war will be test for OCBC - Singapore

By MICHELLE QUAH

THE illustrious Tan and Lee families are the ones holding court in the current bidding war over The Straits Trading Company. But it is a seemingly silent player in the entire saga that may well hold the key to the eventual outcome: OCBC Bank.

The bank is in a delicate position in this takeover tussle, being both a substantial shareholder of Straits Trading and a company in which the Lee family has a controlling interest.

This battle between the Tans and the Lees will be a test of OCBC’s independence. The bank will need to balance its duty to its shareholders with its ties with the Lee family.

OCBC and the Lee family

Thus far, little thought and attention have been devoted to the role OCBC will play in this saga. The bank is simply one of many shareholders of Straits Trading - a Singapore-listed company with interests in property, hotels and tin smelting.

But unlike many of the other shareholders, OCBC is closely linked to one of the two parties fighting to take over Straits Trading.

The bank was founded by the late patriarch and philanthropist, Lee Kong Chian, who also managed OCBC from 1938 to 1964. And, to this date - while the bank is no longer a family-owned business but a publicly traded entity - OCBC continues to be substantially owned by the Lee family.

The Lees, through their various vehicles and subsidiaries, are believed to own about a quarter of OCBC and are its single largest shareholder.

OCBC was managed for a substantial portion of its history by the late Tan Chin Tuan. Mr Tan was OCBC’s managing director and chairman from 1964 to 1983. And the Tan family, through its vehicle Tecity, retains a small stake in the bank. Still, any residual relationship OCBC has with the Tan family pales in comparison to the ties it has with the Lee family.

And it is this perceived imbalance - and OCBC’s status as a listed company in its own right - that has put it in a very delicate position, with respect to the ongoing bidding war for Straits Trading.

OCBC’s pivotal role

Tecity’s chief, Chew Gek Khim - granddaughter of the late Mr Tan - has thrown the spotlight on OCBC’s plight when her family raised its bid for Straits Trading on Monday to $6.50 a share, from $5.70 previously.

Along with the revised offer, she announced to the public that she had sent offer letters to OCBC and the bank’s insurance arm, Great Eastern Holdings (GEH) - which own 6.21 per cent and 19.92 per cent of Straits Trading respectively.

She announced that if OCBC and GEH accept Tecity’s offer, the Tan family - which now owns 23.60 per cent of Straits Trading - would end up owning 49.73 per cent of the offer target.

Her move drew the public’s attention to the pivotal role that OCBC will play in this saga, and observers will now be watching to see how the bank will respond to the competing bids for its stake in Straits Trading.

Essentially, OCBC only has one of three choices to make:

sell its stake to the Lees;
sell its stake to the Tans;
keep its stake.

The circumstances in which it makes this choice will be closely observed. At this point, the Tan family’s offer for Straits Trading at $6.50 a share is substantially higher than the Lee family’s offer of $5.76. Selling to the highest bidder is a commercial decision that most investors understand, so shareholders are unlikely to take OCBC to task if it decides to sell its stake to the Tans.

However, if OCBC chooses to either keep its stake or sell it to the Lees, it will have to justify its decision. If the bank retains its stake, shareholders will want to know if it believes that an offer of $6.50 a share still grossly undervalues Straits Trading.

And, if it decides to sell its stake to the Lees, whose offer is $0.74 a share less than the Tans’, it will really have to come up with good reasons to satisfy its shareholders.

The picture is different if the Lees decide to counter-offer with a higher bid. Any decision by OCBC to sell its Straits Trading stake to its controlling Lee family would then be seen more as a commercial decision. And shareholders would more likely question any decision on the part of the bank to sell its stake to the Tans or to keep the stake.

OCBC, GEH and other Straits Trading shareholders have until Feb 22 to consider accepting the Tan family’s offer - that is, unless a higher bid comes in before then from the Lees.

OCBC needs to recognise that it is in a delicate position, that it is being watched, and that it should move carefully. Its move will also set the tone for GEH’s decision.
Source : Business Times  - 30 Jan 2008

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Fortune Reit distribution income up to 3% in 2007

Fortune Reit distribution income up to 3% in 2007
FORTUNE Real Estate Investment Trust has announced distribution income of HK$284.8 million (S$51.8 million) for 2007, up 3 per cent from 2006.

Distribution per unit for the year ended Dec 31 edged up 2.5 per cent to HK$0.3512.

‘We are pleased that Fortune Reit’s portfolio of 11 retail malls delivered stable and sustainable growth for FY07,’ said Stephen Chu, chief executive of the Hong Kong-based Reit’s manager, ARA Asset Management.

‘This was driven by strong rental reversions of about 15.6 per cent for the whole year on a portfolio basis. Our pro-active asset management strategies, coupled with exciting promotional events in the malls, have contributed to healthy demand from tenants and shoppers.’

Fortune said that as of end-2007 its tax-exempt yield was 6.7 per cent, up from 5.8 per cent a year earlier. Strong rental reversions were driven by its Waldorf Garden Property, which was enhanced in August.

The average rental rate of the entire portfolio was 6.3 per cent higher at HK$25.23 psf at Dec 31, 2007, versus HK$23.74 psf a year earlier. Approximately 45 per cent of leases in the portfolio expire this year, creating a good opportunity for organic growth in a strong retail market, Fortune said.
Source : Business Times  - 30 Jan 2008

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KepLand revenue, profit hit record - SIngapore

KepLand revenue, profit hit record - SIngapore

FY2007: boost from residential sales and revaluation and restructuring surplus
By ARTHUR SIM

KEPPEL Land’s turnover crossed the billion-dollar mark in 2007 to hit a record $1.4 billion, a rise of 48.5 per cent from the previous year’s $948 million.

Mr Wong: Proposed dividends amount to $144 million
The 12-month period ended Dec 31, 2007, saw profit after tax and minority interests (Patmi) more than trebled from $200.3 million to a record $779.7 million. This was bolstered by strong residential sales, a net gain on revaluation of investment properties of $343.6 million, and a rise of $100.5 million under an item which includes corporate restructuring surplus and enbloc property sales. The latter $100.5 million gain was after taking into consideration a $235.2 million surplus from the restructuring of its one-third interest in One Raffles Quay and $89 million in offsets to account for the diminution in value of the group’s Myanmar hotels and the fall in the value of rupiah relating to its prior investments.

Full-year earnings per share came to 108.3 cents, up from 2006’s 27.9 cents. Q4 Patmi rose from $81.2 million to $572.3 million while turnover climbed 8.6 per cent to $371.4 million.
Announcing its financial results yesterday, KepLand group CEO Kevin Wong also said that it was proposing a final one-tier dividend of 8 cents per share and a special dividend of 12 cents to ‘reward shareholders for their support’. The proposed dividends amount to $144 million.

Patmi from property trading made up 35 per cent or $274.9 million of the total 2007 Patmi. Mr Wong said this was driven by profit contribution from Singapore developments including Marina Bay Residences, Reflections at Keppel Bay and Park Infinia at Wee Nam.

Contributions from overseas business made up 39.6 per cent while Singapore business contributed 60.4 per cent, up from 36.4 per cent in the previous year. For the year ahead, Mr Wong said that overseas contributions from residential properties will likely increase to about 50 per cent, in light of the weakening US economy. ‘Our projects are mostly in China and Vietnam, and the subprime effect on these two countries will be less.’

He added that most of its development projects in these two countries were targeted at the mid- to high-end market which was supported by ‘genuine buyers’. He also said the newly instituted capital gains tax in Vietnam should add stability to the market there. ‘Demand for housing in these two countries is coming from a very low base,’ he added.

In 2007, Keppel Land acquired eight residential sites in Vietnam with a total of 22,225 potential units for sale. Three developments are expected to be launched this year.

Other overseas launches for 2008 include a 1,000 unit residential development in Jeddah, Saudi Arabia, while two mega developments with over 8,000 units in Shanghai and Shenyang, China, is expected to be launched in 2009.

Mr Wong said it will continue to look for potential development sites and these will likely be in China, Vietnam and the Middle-East. Highlighting Keppel Land’s low gearing of 0.41 per cent, and the possibility of borrowing to fund future acquisitions, he also said: ‘We can gear up.’

At the end of the trading day yesterday, Keppel Land shares closed 2 cents higher at $6.45 per share.
Source : Business Times  - 30 Jan 2008

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MediShield co-payments set to fall - Singapore

MediShield co-payments set to fall - Singapore

But more benefits will mean higher premiums
By CHEN HUIFEN
(SINGAPORE) The co-payment component under the national health insurance MediShield scheme could go down to 20 per cent of the hospital bill size before the end of this year, if Health Minister Khaw Boon Wan has his way.
At the same time as patients’ contributions to their individual hospital bills go down, MediShield premiums are likely to go up.

‘If you want more benefits, premiums must go up,’ Mr Khaw said. ‘So if you want the premiums not to go up too high, then of course the benefits that can be granted will also be commensurate. But because of the pooling system, a small increase in premiums for the patients can mean a lot of benefits. That’s what insurance is for.’

The co-payment portion under the MediShield scheme is the fraction of the total bill that patients have to pay themselves, after MediShield kicks in to pay for the rest. The scheme also includes a deductible to exclude small claims, and limits on the maximum claim size for each type of medical procedure. These features are meant to prevent excessive demand for medical services, which fully-paid insurance schemes tend to encourage, and to keep the insurance premiums affordable.

On average, MediShield covers an average of 60 per cent of each large medical bill at Class B2 or C wards, so the average co-payment component is 40 per cent of the bill. Speaking to reporters after donating blood at the Bloodbank@Health Sciences Authority yesterday, Mr Khaw noted that the co-payment is ’so high’ now because of the relatively low daily claim limits and the use of implants, which are increasingly expensive.

He said that he intends to raise the daily claim limits, especially in intensive care units. In addition, he hopes to find ‘that sweet spot’ where the premium increase will not be more than $10 a month for the majority of policyholders, while still allowing them to reap maximum benefits.

Yesterday, the Ministry of Health (MOH) also announced that it will allow Medisave to be used for outpatient diagnostic scans in cancer treatment. From April, confirmed cancer patients can withdraw up to $600 a year from their Medisave account for MRI, CT and PET scans. Currently, patients can use their Medisave funds for such tests only when they are hospitalised.

When asked why he would not extend Medisave to cover diagnostic scans by heart patients, Mr Khaw said that he feared unethical doctors might prescribe the scans for healthy people. He said that MOH would start with cancer treatment to see how the system can be implemented and monitored to ensure that there is no abuse.

In the pipeline too is the extension of Medisave to be used for outpatient treatment of asthma. Currently, Medisave can be used for outpatient visits by patients with four types of chronic conditions: diabetes, hypertension, lipid disorders and stroke.

Source : Business Times  - 30 Jan 2008

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Market conditions delay Marina Bay Suites launch -SIngapore

Market conditions delay Marina Bay Suites launch -SIngapore

KepLand targets after Chinese New Year, but within first quarter
By ARTHUR SIM

(SINGAPORE) The launch of Marina Bay Suites has been postponed, with ‘market conditions’ cited as the cause by Keppel Land group chief executive Kevin Wong.

Later date: The launch of the 221-unit Marina Bay Suites will be after the Chinese New Year, sometime within the first quarter, says Keppel Land group CEO Kevin Wong
The news comes as a surprise as the consortium developing it - Keppel Land, Cheung Kong Holdings/Hutchinson Whampoa and Hongkong Land, had earlier said that the launch would be around end-January, before the Chinese New Year.

The consortium also said then that over 600 potential buyers, half of them foreigners, had registered their interest in buying into the 221-unit luxury development, priced at around $3,000 psf.

However, at a press conference to announce the company’s full-year financial results yesterday, Mr Wong said that the launch would now be after the Chinese New Year - within the first quarter of 2008. He also said that units would be ‘progressively released in tandem with market conditions’.

Keppel Land’s other launches, including the next phase of Reflections at Keppel Bay, The Tresor and Madison Residences, will all be staggered to follow the launch of Marina Bay Suites to ensure that they do not coincide.

For Reflections at Keppel Bay, which has 400 units remaining, Mr Wong said that its launch would be around mid-2008.

Adopting the cautiously optimistic tone already shared by other developers, he said: ‘If everything picks up in the second half of the year, then we will be back in business.’

His announcement follows Wing Tai deputy chairman Edmund Cheng’s comment on Monday that it would monitor global markets ‘to see how things pan out before we launch anything’. Wing Tai projects that have yet to be launched include Belle Vue Residences and L’Viv.

Earlier this month, City Developments also said that depending on construction schedules, and if the opportunity arose, it could consider short-term leases for Lucky Tower, which it acquired through a collective sale in May 2006.

Keppel Land’s Mr Wong does expect prices in the high-end sector to be affected if a recession takes hold of the United States economy. ‘But we expect mid to mass-market prices to go up steadily,’ he added.

Mr Wong, who said that Keppel Land saw a default rate of about 5 per cent on its projects during the last property slump in the mid-1990s, added: ‘There will be some (if there is a recession in 2008) but the percentage will be fairly low.’

Commenting on the postponement of the Marina Bay Suites launch, Knight Frank director (research and consultancy) Nicholas Mak said that ‘developers are all watching each other now, but someone has to take the plunge first to test the water’.

‘Because of the thin volume at the moment, the market is looking for direction. But we must bear in mind that the volume and price increases in 2007 was out of the ordinary.’

Mr Mak also highlighted that developments with licences to sell will increase as the year progresses. ‘If developers wait for prices to go up, everybody could be launching at the same time.’

Source : Business Times  - 30 Jan 2008

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Mindy Yong

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