Developing companies’ capability for innovation and R&D was part of the Singaporean government’s Budget plans for the coming year.

Part of the Resilience Package will see the Government spending $130 million on enhancing grants and training schemes to encourage enterprises across various sectors to refresh and develop new capabilities.

It will also widen the scope of activities that qualify for grants.

There will also be increased support for the media and digital entertainment industry where opportunities are growing rapidly.

A $230 million Singapore Media Fusion (SMF) fund will be set up to provide grants to help local enterprises export content, applications and services, as well as to build up a world-class media talent base.

This will complement plans to develop Mediapolis at One-North, which will help position Singapore as a leading media hub in Asia.

In his speech yesterday, Finance Minister Mr. Tharman Shanmugaratnam also said that Singapore is an emerging hub for firms in the interactive digital media arena.

He brought up the example of local company Razer which launched a new pro-gaming mouse primed for the international gaming market.

“Two weeks ago for example, gaming peripherals company Razer launched the Razer Mamba, using advanced proprietary technologies developed out of Singapore. Selling for USD$130 – it’s not your everyday mouse. It is the fastest gaming mouse in the world.”

Media and digital entertainment businesses can also write down the cost of acquiring intellectual property rights in two years instead of five years, the Finance Minister said. This is to encourage such companies to exploit intellectual property from Singapore.

Asia One Digital

SINGAPORE — A body which represents publicly traded Asia-Pacific real estate has set up a chapter in Singapore to ultimately serve as a major cross-border REITs center, the Asian Public Real Estate Association said on Tuesday.Market capitalization of the city-state’s real estate investment trust (REIT) market amounts to US$21.6 billion, second to Japan with a capitalization of US$46 billion.

“For some players, 2008 will represent a period of good opportunities for companies that are well capitalized and don’t rely on credit,” The Business Times quoted Peter Mitchell, the association’s chief executive officer, as saying.

Hong Kong ranks as the third-largest REIT market with capitalization of US$8.5 billion, followed by Taiwan at US$1.7 billion, Malaysia at US$1.6 billion and South Korea at US$0.6 billion.

Mitchell described the REIT sectors in Hong Kong, Japan and Singapore as mature. The general downturn in the economy could see a return to fundamentals,” he told the newspaper.

The association currently has 125 members.

Mitchell said projections of another 10 REITs being listed in Singapore this year seems a bit optimistic amid the U.S. subprime crisis and global credit crunch, but there are still opportunities in Asia.

The city-state has the potential to become a major centre for the region, Mitchell said, mentioning upcoming listings of Indian, Japanese, Chinese and Indonesian REITs.

Property prices in Dubai are likely to fall 10% by 2010 as the supply of real estate outpaces demand, according to a new report.

Global investment bank Morgan Stanley said that in a worst case scenario Dubai could follow the pattern of Singapore in the late 1990s when property prices plunged 80% in 18 months. But its report points out this a ‘low probability’.

However the report comes on the back of concerns from other financial institutions that the market in Dubai is in danger of overheating.

As Morgan Stanley points out prices in the Dubai property market have risen a massive 79% since the start of 2007. ‘We expect oversupply to hit Dubai in 2009, leading to a period of price declines,’ the report concludes.

This could have implications for other property markets in the Middle East. ‘While we expect these price declines to be limited to Dubai given the level of undersupply in surrounding markets, we cannot rule out a contagion effect on Middle East and North Africa property shares prices, as investor confidence suffers,’ it adds.

There is no doubt that Dubai is still booming. Economic growth supported by a six-fold rise in oil prices has attracted streams of investors. According to Morgan Stanley’s price index, Dubai property prices soared 25% in the first half of 2008 showing there is no sign of cooling yet.

Prices have been driven by a combination of genuine demand, speculation and, most recently, escalating construction costs,’ it said. ‘For 2009, we expect prices to start coming under pressure as oversupply becomes evident. We forecast a 10% decline between 2008 and 2010,’ the report continues.

A slight easing of prices in the Emirate may not impact Abu Dhabi and Qatar, whose property sectors should remain undersupplied until at least 2012.

Source: Property Wire

INTERNATIONAL. The global property world turns its attention to Asia on 15 April with the opening of the second Cityscape Asia exhibition and conference – part of the world’s biggest business-to-business real estate event brand.

“Cityscape Asia provides a platform for inter-regional property investment trends between Asia and the rest of the world to play out,” said Graham Wood, Exhibition Director of Cityscape Asia, which takes place at Suntec, Singapore.

“Singapore’s strategic position connects foreign investors to the Asian property markets. For developers from the Middle East in particular, Asia is providing a stream of opportunities with several Arabian Gulf based companies involved in major projects,” Wood added.

The guest of honour at the grand opening will be Grace Fu, Senior Minister of State for National Development and Education, Singapore.

Major companies with representation in Singapore, Hong Kong, Malaysia, Singapore, the UK, Germany, the United Arab Emirates, Canada, Thailand, Indonesia, Vietnam, China, Brunei, Italy and the USA will be among the participants.

Cityscape Asia, which runs until 17 April 2008, will showcase iconic architecture and property investment opportunities throughout the region and beyond to an audience of regional and international investors, real estate developers, architects and designers, governments and senior professionals.

Cityscape Asia also hosts the International Property Investment and Development Conference with more than 50 speakers including CEOs, managing directors and government officials examining the opportunities in Asia including real estate investment trusts, derivatives and an Asian investment property databank. There will also be debates on clusters and hubs for financial institutions, investment opportunities in airport cities and the impact of integrated resorts on the Singapore market.

In addition, the World Architecture Congress at Cityscape Asia takes place at the same time and venue. Several debates at the congress will have a green focus with a number of prominent international and regional speakers examining sustainability and energy efficiency in building the environment of tomorrow. more…

Despite uncertainty over the global economic repercussions of the sub- prime crisis and the slowing US economy, the Singapore property investment sales market remained surprisingly active in the first two and half months of 2008, with a total of $5.91 billion (to- date) of investment sales recorded. Strong economic fundamentals and the positive long- term outlook in Singapore underpinned property investment activity even in the uncertain global economic environment.CBRE’s definition of investment sales includes real estate sales with a value of at least $5 million comprising government and private sales, buildings and land, strata and enbloc. It also includes the change of ownership of real estate via the sale of shares.

The private sector took the lead in investment sales in the first quarter of 2008, accounting for 55 per cent or $3.27 billion (to- date) of the quarter’s total investment sales. Public land sales have so far contributed the remaining 45 per cent or $2.64 billion. The most significant public land sale in the first quarter so far was the award of a hospital site at Novena Terrace/Irrawaddy Road to Parkway Holdings for $1.25 billion ($1,600 psf/plot ratio). The winning bid was more than double the next bid submitted by Napier Medical Pte Ltd at $540.88 million ($695 psf/plot ratio). A commercial site comprising 17 conservation shophouses at Jalan Sultan, was awarded to Chiu Teng Estates Pte Ltd for $14.80 million ($974 psf/plot ratio). A total of 20 bids were submitted for this site, indicating investors’ strong interest for commercial development sites. Other notable public sector sales in Q1 08 (to- date) includes a residential site at Simei Street 4 which was sold to a joint venture between UOL Group and Khe ng Leong for $236.05 million ($296 psf/plot ratio), an industrial site at Playfair Road which was sold to Trio Link Development Pte Ltd for $33 million ($142 psf/plot ratio) as well as a 15- year leasehold transitional office site at Mountbatten Road which was awarded to Mezzo Properties Pte Ltd for $14.89 million ($69 psf/plot ratio). In addition, the last condominium site at Sentosa Cove was awarded to a joint venture between Ho Bee Group and IOI Properties for $1.10 billion ($1,822 psf/plot ratio).

The office sector performed well during the first three months of 2008, accounting for 34 per cent of total investment sales or $2.01 billion so far. Despite signs of rising caution due to the impact of the US sub- prime mortgage problems, healthy office leasing momentum and Singapore’s strong economic fundamentals continued to drive substantial investment activity in the office sector. Foreign investors showed no sign of scaling back office investment activity, as evidenced by some notable office sales during the quarter. This included the sale of Hitachi Tower to a foreign fund for $811 million ($2,901 psf) and Singapore Power Building was sold to Pacific Star Group for $1.01 billion ($1,820 psf). In addition, Auric Pacific Group sold One Phillip Street to New Star International (Singapore) Pte Ltd for $99.02 million ($2,749 psf). Going forward, strong office demand and potential for further rental escalation would lead to more acquisitions of office properties in 2008. The sustained influx of foreign investors should continue to lead to steady activity in the office investment market.

Investment activity in the residential sector slowed considerably in Q1 08, contributing $2.23 billion (to- date) in transacted value (including Good Class Bungalow sales) or 38 per cent of total investment sales. Compared with the heightened investors’ interest in en bloc acquisition witnessed in 2007, investors’ demand for private residential land continued to be lukewarm in the first quarter of 2008. Developers are no longer as keen to acquire more sites compared to last year as most of them have built a relatively strong inventory of freehold residential sites from the robust collective sales market in 2007. It was observed that developers have already taken the cue to act cautiously. The buying of sites has been so far limited to specific choice sites since the response to recent new launches has been subdued. In addition, the release of more affordable 99-year leasehold residential sites by the Government for sale in the first half of 2008 may sway some buying interest away from prime freehold residential sites in the private sector. The only successful collective sale deal in Q1 08 was Ban Guan Park which was acquired by Link THM Holdings Pte Ltd for $31.10 million ($870 psf/plot ratio). In March, a fund managed by ARA Asset Management purchased 53 units at Grange Infinite for about $400 million ($2,600- $2,700 psf).

Investment in the industrial sector has been largely driven by REIT- related purchases and accounted for 6 per cent of total investment sales or $333.66 million in the first quarter so far. Ascendas REIT (A- REIT) contributed the bulk of industrial investment sales by acquiring four industrial properties for a total of $176.70 million. MapletreeLog also continued to expand its portfolio size and value in the quarter by acquiring two properties for a total of $66.50 million.

The investment sales market is likely to see a challenging year in 2008. Amidst the global financial turmoil resulting from the US sub- prime crisis, real estate investors are expected to take a longer time to assess the market prospects before committing to an investment deal. As such, the investment market is unlikely to see a high volume of transactions in the first half of 2008. Nevertheless, continued strong growth in Asia, coupled with Singapore’s position as a financial services hub and popular business destination for MNCs will help to maintain a healthy level of investment activity in the Singapore property market.

Source: PRWeb

Singapore – Singapore plans to double the size of its financial district as part of its strategy to emerge as one of Asia’s leading financial centres, the government said on Monday. The new growth area will be more than twice the size of London’s Canary Wharf and provide 2.8 million square metres of office space, the equivalent of Hong Kong’s main central district, said the Urban Redevelopment Authority.

“Singapore’s strong economic fundamentals have been driving the growth of the property market, and the corresponding demand for quality office space, for the past few years,” said Choy Chan Pong, the URA’s land administration director.

“To continue attracting investments, we are planning ahead to ensure we have sufficient land and infrastructure to support our robust economic growth.”

Singapore’s economy grew by 7.7 per cent in 2007, and it is expected to continue to grow by between 4 and 6 per cent in the medium term.

“This sustained growth will continue to underpin and drive the growth of the property market and the demand for quality office spaces in the next few years,” the URA or land-use agency said.

The URA will offer sites for development near the multi-billion-dollar Marina Bay convention and casino resort complex over the next five to six years to meet the expected demand.

Over 15 years, the development of the 75-hectare site earmarked for extension of the financial district will see the addition of 2.82 million square metres of office space, “equivalent to the amount of office space in Hong Kong’s Central today,” the URA said.

Source: The Earth Times

SINGAPORE — A body which represents publicly traded Asia-Pacific real estate has set up a chapter in Singapore to ultimately serve as a major cross-border REITs center, the Asian Public Real Estate Association said on Tuesday.Market capitalization of the city-state’s real estate investment trust (REIT) market amounts to US$21.6 billion, second to Japan with a capitalization of US$46 billion.

“For some players, 2008 will represent a period of good opportunities for companies that are well capitalized and don’t rely on credit,” The Business Times quoted Peter Mitchell, the association’s chief executive officer, as saying.

Hong Kong ranks as the third-largest REIT market with capitalization of US$8.5 billion, followed by Taiwan at US$1.7 billion, Malaysia at US$1.6 billion and South Korea at US$0.6 billion.

Mitchell described the REIT sectors in Hong Kong, Japan and Singapore as mature. The general downturn in the economy could see a return to fundamentals,” he told the newspaper.

The association currently has 125 members.

Mitchell said projections of another 10 REITs being listed in Singapore this year seems a bit optimistic amid the U.S. subprime crisis and global credit crunch, but there are still opportunities in Asia.

The city-state has the potential to become a major centre for the region, Mitchell said, mentioning upcoming listings of Indian, Japanese, Chinese and Indonesian REITs.

The vast majority (more than 80%) of Singaporeans live in public housing. These homes are located in housing estates, where most are developed neighbourhoods with schools, supermarkets, clinics, food centres and recreational facilities. Popular neighborhood estates include names like Ang Mo Kio Town, Toa Payoh, Clementi, Yishun, Bishan, Hougang, Simei, Woodlands, Punggol, Bukit Batok,Tampines and others to the name. In short, they are called HDB.

Owning a home, a property in these places is a satisfaction. However, a buyer must consider factors before buying properties. It is the decision of the buyer to engage with real estate agents to handle transactions. Advantages of hiring the best real estate agents depend on its accreditation. STAR PROjECT is a member of The Singapore Accredited Estate Agencies (SAEA) Scheme was introduced in November 2005 to ensure that accredited agencies and agents are competent and proficient in their field, and are equipped with the necessary knowledge and skill to give advice and carry out property transactions and deals.

The scheme was initiated by the Singapore Institute of Surveyors and Valuers and the Institute of Estate Agents and is supported by the Ministry of Finance, the Housing Development Board and the Inland Revenue Authority of Singapore.

Individual agents must either have a degree or diploma in real estate studies, or passed a professional examination called the Common Examination for House Agents (CEHA).

And STAR PROjECT also possess a valid house agent’s licence issued by the Inland Revenue Authority of Singapore.

Aside from availing themselves to professional advice, clients of accredited agents will also have an avenue for dispute resolution (at the SISV Mediation Centre) should they encounter problems during transactions.

For more information visit Star Project’s site http://www.starproject.com.sg…

DOHA, Qatar : It has been dubbed the “Venice of Qatar”; a project called “The Pearl-Qatar” is an upscale Riviera-style development, and when completed in 2011, the project will be home to some 40,000 residents.

Investors from 45 countries have flocked to the project to snap up properties there, but real estate is not the only attraction for Singapore companies.

With its mix of Venetian charm and Arabic chic, the US$20 billion project is built entirely on a man-made island.

All 4 million square metres of it is reclaimed land, creating 32 kilometres of new coastline.

The project has been launched in phases, and according to the developer, 35 percent of the units have already been taken up.

In fact, an entire residential district was sold within an hour recently.

That transaction alone amounted to over US$405 million.

These mind-boggling numbers were presented to the Singapore delegation, led by Senior Minister Goh Chok Tong.

The progress of the development was obvious as the visitors cruised the waters of the Arabian Gulf.

However, while property is one obvious area to consider, Singapore companies may want to venture into other sectors.

Minister of State for Education Lui Tuck Yew said, “There are some possibilities on how Singapore companies can participate because we were asking them about security arrangement, we were asking them about the operation and the running of the entire complex, and they thought that that’s an area where Singapore companies would be interested to look into.” more…

SINGAPORE (AFP) — Singapore’s hotel sector looks set to continue its spectacular rebound as room rates and visitor numbers hit record levels and the city-state unveils numerous sparkling attractions, experts say.

The inaugural Singapore Airshow, which bills itself as Asia’s largest aerospace and defence event, starts the year off with thousands of foreign visitors expected in February.

About the same time the Singapore Flyer, the largest observation wheel in the world, is to open.

Events will peak in September when Singapore’s first Formula One Grand Prix races through the city’s famously pristine streets.

Even before the new attractions Singapore’s tourist arrivals hit fresh peaks, with record high visitor numbers every month last year, said Quek Swee Kuan, the Singapore Tourism Board’s (STB’s) deputy chief executive for international operations.

“Similarly, the hotel sector has had an exceptional year, with hotel occupancy and room rates at an all-time high,” Quek said.

Latest STB figures showed 837,000 visitors in November, the largest number ever for that month, while average hotel room rates set a new milestone of 226 dollars (158 US) a night, up almost 30 percent over the previous year.

The average occupancy rate in November was 88 percent, meaning rooms were virtually filled every night, analysts said.

Some observers say the higher room rates should not deter visitors as accommodation at a local four- or five-star hotel is still cheaper than elsewhere in the region.

Visitors to Hong Kong or Tokyo can expect to pay on average 70 dollars more at an upmarket hotel, said Chee Hok Yean, executive vice-president of property consultancy Jones Lang LaSalle Hotels.

“Looking at the region, Singapore rates are not that high compared to Hong Kong, Shanghai and Tokyo,” said Chee.

“It’s still relatively affordable compared to some of the other markets.”

The experience of other Asian cities and even New York has shown that, as long as there are attractions to draw tourists, visitors will come even if room rates are high, she said.

But Jane Chang, a marketing communications executive with Chan Brothers Travel agency, said finding rooms at competitive rates for leisure travellers has become increasingly difficult.

“This is especially so as despite the increase in rates, booking volume remains high as demand from the corporate travel sector continues to grow,” she said.

The STB says arrivals will not be affected.

It says the government is working to address the need for more rooms with the release of 14 sites for hotel developments since August 2006. These new hotels are expected to add another 4,800 rooms, the STB said.

The St. Regis luxury hotel chain opened its doors in December and general manager Yngvar Stray said there is demand for high-end accommodation as the city-state goes after big-spending tourists.

“I would actually say there is a substantial need for this in Singapore,” said Stray, whose hotel boasts butlers on each floor and a fleet of hand-built Bentley luxury cars at the service of its guests. more…