Tuesday 19 February 2013

Singapore home sales rise 43pc in wake of cooling action

Singapore home sales rose 43 per cent last month as buyers rushed in after the government announced cooling measures to ease prices.

 Home sales increased to 2,013 units in January from 1,410 units in December. There were 22,699 sales for all of last year.

“This is a bit of an abnormality and the increase was a bit of a surprise,” said Nicholas Mak, executive director at SLP International Property Consultants. He said developers had extended office hours on the eve of the curbs.

“February will be lower than January because this is when the effects of the cooling measures will be felt,” Mak said.

Singapore home prices reached a record high in the fourth quarter amid low interest rates, raising concerns of a housing bubble and prompting the government to introduce its seventh round of cooling measures.

Singapore has been attempting to rein in prices since 2009, when the government barred interest-only loans for some housing projects and stopped allowing developers to absorb interest payments for apartments still being built.

Mak said the curbs were also partly offset by price cuts by developers, some offered through rebates.

He expects prices for so-called mass-market homes to increase between 1 per cent and 5 per cent this year.

For high-end homes, or those in prime districts, prices may rise 2 per cent or decline as much as 8 per cent depending on buyers’ reactions to the measures, Mak added.

Singapore’s property index has risen to the highest in almost five years. The measure has climbed 2 per cent since the curbs were announced last month, recovering from a 1.6 per cent decline on the first trading day after the measures.

Knight Frank cut its estimates for new home sales for 2013 by 20 per cent after the measures and expects sales to range between 12,000 and 14,000 units this year.

“Despite the strong sales volume in January, there could be a potential decline in demand for private homes for the next two months in first quarter this year by about 10 to 15 per cent, as the private residential market fully absorbs the impact of the seventh round of property cooling measures,” property broker, Knight Frank, said.

The latest measures include an increase in the stamp duty for homebuyers of between 5 percentage points and 7 percentage points, with permanent residents paying taxes when they buy their first home.

Singaporeans will also have to pay the levy, starting with their second purchase.

The government also tightened loan-to-value limits for buyers seeking a second mortgage, referring to the amount they are allowed to borrow relative to the value of their properties.

The payment will also rise to 25 per cent from 10 per cent starting from the second loan, it said.


Singapore home sales rise 43pc in wake of cooling action

Phuket Masses Multiply; Singapore KL Speed Link; Phuket Ivory Warning ...

PHUKET: The daily wrap of Thailand news, with a Phuket perspective, plus relevant reports from national and international media. Beware of inconsistent imitations.

nationmultimedia.com Russian and Chinese visitors accounted for 38 percent of international airport arrivals to Phuket in 2012, according to consulting firm C9 Hotelworks. This trend is consistent with Thailand’s continued surge in the mass market where last year more than three million visitors from China and Russia came to the country.

bbc.co.uk Singapore and Malaysia have announced plans for a high-speed rail link, with a target completion date of 2020. The link would reduce travel time between Singapore and Kuala Lumpur to 90 minutes.

Phuket Update Phuket Governor Governor Maitree Inthusut is to provide 30-hour courses in basic English to 30 Phuket journalists as part of an education program for tourism and the Asean Economic Community in 2016.

abcnews.go.com Olympian Oscar Pistorius denied that he willfully killed his girlfriend, telling a South African court that he shot the woman through his bathroom door because he believed she was an intruder.

news.com.au The Olympic runner says he believed he would be forced to fight an intruder in total darkness without his prosthetic limbs. ”It filled me with horror and fear” he said about the moments before he fired shots into the bathroom door.

guardian.couk Belgian police are looking for eight masked gunmen who stole tens of millions of pounds worth of jewels from a security van that was loading the hold of a Switzerland-bound plane. Staff at Brusels airport were loading safes full of diamonds bound for Zurich.

news.com.au Shocking pictures have emerged of a group of asylum seekers rescued after two months at sea as they desperately tried to reach Australia. The 31 men and a boy had been at sea without food for 21 days when the Sri Lanka Navy rescued them after being informed by a local fishing boat.

huffingtonpost.com That the Burman majority that makes up 60 percent of Myanmar’s population has been engaged since the end of World War II in an ethnic cleansing campaign against 135 other ethnic minorities here is a modern tragedy. That the cleansing campaign continues in some villages to this day is an ongoing outrage that the world must bring to an end.

THE NEW Outrigger Laguna Phuket Beach Resort, has appointed Italian Roberto Conrad as Executive Chef and Dane Anders Olesen as Pastry Chef. The 255-key absolute beachfront holiday resort opens March 15.

bangkokpost.com Nok Air is unperturbed by criticism that it exploited women’s bodies as a marketing tool in its 2013 calendar featuring bikini-clad Maxim models. The budget airline is already promising that the 2014 calendar will be at least as daring.

nationmultimedia.com The Department of National Parks, Wildlife and Plant Conservations is to campaign in Phuket and other tourism destinations to advise shops to stop selling ivory to foreign tourists.

AP Hollywood actor Leonardo DiCaprio has called on the Thai government to ban ivory. DiCaprio sent an email to friends and supporters to sign a petition to Prime Minister Yingluck Shinawatra over the wildlife trade.

bangkokpost.com Deputy Prime Minister Chalerm Yubamrung has appointed nine members of the Wadah group as his advisers on the deep South. The move has been criticised as some members of the group have been linked to insurgents in the region.

bangkokpost.com Want to win the hearts and minds of the Malay Muslims in the restive South? Stop thinking about using military force. Think instead of how to give them back their region’s once abundant food. Trawlers hurt not only the southern Muslim fisherfolk, but the whole country.

cnn.com Well-armed, motivated and increasingly audacious, the Muslim insurgency in the southern provinces of Pattani, Yala, Narathiwat, Satun and Songkhla has emerged with a clear goal: the creation of a separate Muslim state for the region’s 1.8 million Muslim ethnic Malays.

nationmultimedia.com The Business Development Department is closely examining the operations of 82 Phuket-based businesses suspected of breaching the Foreign Business Act, which prohibits foreigners from owning more than 49 percent of Thai companies.

scmp./com Sales of Hong Kong hotel rooms as residential flats will cut the city’s supply of accommodation and harm tourism, the Tourism Board has warned.

nooga.com The newspaper as we know it is dying. No matter how great a newspaper is, fewer and fewer people are going to buy it or subscribe to it.

ft.com The parent company of the publisher of 91-year-old Reader’s Digest magazine has filed for its second bankruptcy in four years as it seeks to slash $465m in debt amid wider pressure on print publications.

channelnewsasia.com A group of 26 Singaporean tourists lost some $50,000 in Italy when their belongings were stolen from their tour bus in Rome. The theft took place on the second last day of their 10-day holiday.

bangkokpost.com The Tourism Authority of Thailand chief has apologised to the families of the British couple who were killed by a pickup on a cycling trip. Comment: The TAT should have a department staffed with hundreds of workers whose job it is to apologise to visitors/victims.

goal.com Arsene Wenger’s Arsenal need a miracle in Munich to qualify for the quarter-finals after being completely outclassed by Bayern Munchen 1-3 in their home leg.

cnn.com Australian swimming officials have vowed to ”win back the admiration of a nation” following the release of a damning report that blamed a ”toxic” team environment at London 2012 which led to the country’s worst Olympic pool performance in 20 years.

February 21 Tsunami practice, Karon beach

February 22-March 2 Otop Fair, Saphan Hin public park, Phuket City. Day and night fair for food and fun, with produce and handicrafts from Phuket and all over Thailand on sale. Otop signifies one village, one product.

February 25 Makha Bucha Day (Public Holiday)

March 2 Phuket FC v BBCU FC Away

March 10 Phuket FC v Bangkok FC at Surakul Stadium, Phuket City

March 16 Phuket FC v Sriracha Suzuki FC at Surakul Stadium, Phuket City

March 21-24 Phuket Boat Show (Pimex) Royal Phuket Marina

March 31 Easter Sunday

April 6 Chakri Memorial Day (holiday the following Monday)

April 13-17 Songkran New Year Festival

May 1 National Labor Day

October 5-13 Phuket Vegetarian Festival

November 8-10 Long Distance Triathlon, Patong beach

December 5 HM The King’s birthday

November 14-21 Fourth Asia Beach Games, Phuket


Phuket Masses Multiply; Singapore KL Speed Link; Phuket Ivory Warning ...

CVC May Revive Formula One Singapore IPO

Private-equity firm CVC Capital Partners is looking into reviving its plans to list motor racing franchise Formula One Group in Singapore later this year, after pulling a $2.5 billion initial public offering last year because of weak markets, people with knowledge of the deal said Tuesday.

A U.S. listing is also one of the options being considered, one of the people said, though that is less likely due to the relative lack of awareness of the sport there, unlike in Singapore, which has been hosting Grand Prix racing since 2008.

Manchester United,

the U.K. soccer team, had also mulled a listing in Singapore last year, but ended up going public in New York, raising $200 million. Manchester United PLC’s shares are up more than 30% since it went public.

Formula One was planning to structure its Singapore IPO in the form of a stapled security, which includes a sale of both shares and loan notes. That would help keep the tax bill low, as the proceeds raised from the sale of loan notes would be taxed at a lower rate than those raised from shares.

There are no plans to revise the structure of the IPO, said one of the people with knowledge of the deal.

But CVC, which invested in Formula One in 2006, is under no pressure to exit its investment after it sold stakes to institutional investors ahead of the planned IPO last year, cutting its stake to around 35% from 63%. The institutional investors include Waddell Reed Financial Inc.,

Norges Bank Investment Management and BlackRock Inc.

In March last year, CVC also refinanced the acquisition loan used to fund its buyout of Formula One, allowing Formula One to pay out about $700 million to its owners.

Still, the chances of a listing in Singapore or New York hinge on the outcome of an investigation of Formula One Chief Executive Bernie Ecclestone. He was placed under investigation in Germany after a former German banking executive was sentenced to more than eight years in prison after allegedly receiving bribes from Mr. Ecclestone in connection with a 2005 agreement to sell a stake in the company.

Mr. Ecclestone, who built Formula One into a lucrative global business from the late 1970s, hasn’t been charged and has denied wrongdoing.

Mr. Ecclestone acknowledged last year in court that he paid the banker, Gerhard Gribkowsky, but said it was because he felt he was being blackmailed.

People familiar with the case say the overhang of the investigation is one factor behind the delay of the IPO.

Write to P.R. Venkat at venkat.pr@dowjones.com and Isabella Steger at isabella.steger@wsj.com


CVC May Revive Formula One Singapore IPO