Dec CPI at 4.4%

Mth-to-Mth: 0.5% (Last mth: 0.6%)
Yr-to-Yr: 4.4% (Last mth: 4.2%)
2007: 2.1%

* SingStat-Dec CPI *

Surprised Rates Cut

Fed moved to cut interest rate by 0.75% to 3.5% last night, when global stock markets fell sharply for the past 2 days, amid fears of a US recession.

* Bloomberg-Fed , CNA-Fed , CNBC-Fed *

Sibor Rates Dropped to Lowest in 3yrs

At 1.7625% yesterday, the 3-mth Sibor (S'pore interbank offered rate) was at its lowest level since Feb 05, and is expected to go down further by mid-yr.

As Sibor is the rate which banks lend cash to each other, it thus affects loans such as mortgages, corporate & small business loans. But this fall would also mean that fixed deposit rates and banks' net interest margins would drop.

With savings interest rates so much lower than inflation (ie -ve real interest rates), it may be better not to keep money in the bank, and a better time to borrow.

Sentosa Cove Iconic Condo Site for Sale

The Pinnacle Collection was awarded to Ho Bee Investment & IOI Properties at $1.097b ($1,822 psf ppr). Hence break-even cost is abt $2.5k psf, and may sell at a price tag of abt $3k psf.

* AsiaOne-Pinnacle *

*** 19 Sep 2007 ***
For sale! For sale! Last iconic condo site of The Pinnacle Collection of Sentosa Cove.

The final iconic condo site went on sale yesterday at a reserve price of $964m ($1,600 psf ppr). Property consultants are expecting bids to be >$2k psf ppr and hence the selling price of the completed project is estimated at $3.2k - $3.8k psf.

The 99-yr leasehold site of 231,677 sf with plot ratio of 2.6, can build up to 357 units of apartments. At a height limit of 20 storeys, it is higher than CDL's The Oceanfront which is 15-storey high.

A glimpse of Sentosa Cove ... ...
(1) Central Marina Precinct
(A) Commercial
- The Quayside Isle
- One15 Marina Club
(B) Residential
- The Marina Collection, $817.66 psf ppr (6 Oct 06)

(2) Northern Residential Precinct
(A) Condo
- The Azure, $410.48 psf ppr (6 Oct 04)
- The Coast, $638.62 psf ppr (12 Jan 06)
- The Berth by the Cove, $350.65 psf ppr (20 Dec 03)
- The Oceanfront @ Sentosa Cove, $484.68 psf ppr (13 May 05)
(B) Landed
- Coral Island, $205.85 psf (20 Nov 04)
- Paradise Island, $260.00 psf (28 Jul 05)
- Treasure Island
- The Lakefront Collection, $378.00 psf (13 Sep 06)
- Villas @ Sentosa Cove
- Ocean 8
- The Berthside

(3) Southern Residential Precinct
(A) Condo
- The Waterfront Collection, $918.92 psf ppr (13 Dec 06)
- The Seaview Collection, $1361.33 psf ppr (12 Mar 07)
- The Beachfront Collection, $1799.78 psf ppr (30 Jul 07)
- The Pinnacle Collection, $1822 psf ppr (09 Jan 08)
(B) Landed
- Sandy Island, $617.00 psf (05 Mar 07)
- Pearl Island (Expressions of interest exercise closes on Oct 25)
Expectations:
CBRE: $127m - $144m ($800 - $900 psf)
- The Green Collection, $1099 psf (Sep 07)

* Sentosa Cove-Sale *

*****
Got lots of money and don't know where to spend??? Invest in a unit at Sentosa Cove ... living in a prestige neighborhood with magnificent seaview or soothing greenery. Sooooooo good ... ...

IDR Land Price Increasing

Land price in Iskandar Development Region (IDR) continues to increase.

Last wk, a 45ha land at Nusajaya was bought by Dubai's Limitless Holdings & M'sia's state-owned UEM World at RM242m (RM50psf). This was higher than RM43psf, transacted just 4mths ago.

UEM World also owns 4,137ha of land at Nusajaya. At RM50psf, estimated UEM's real net asset value would be RM12.46 a share and its current share price is traded at abt RM3.90 only.

* AsiaOne-IDR *

Oil at US$100/barrel

Welcome to the new year with oil price record at US$100/barrel.

A peek at past highs since 2004:
(1) 18 Oct 04: US$55.67 - Worries of low stockpiles in US b4 winter
(2) 29 Aug 05: US$70.85 - Hurricane Katrina severely disrupted production
(3) 15 Jul 06: US$78.40 - Tension in the M.East
(4) 01 Nov 07: US$96 - Worries abt tight global supplies, and tensions btw Turkey & Iraq
(5) 02 Jan 08: US$100 - Higher global fuel usage and unrest in Nigeria

* AsiaOne-Oil , CNBC-Oil *

*****

Joker? ... ... Lone Trader Caused $100 Price for Oil

Estimated 4Q07 Growth at 6%

Advance estimates of 4Q growth was at 6%, which was lower than expected and was also the 1st Qtr-to-Qtr drop since 2003. This put the overall GDP at 7.5% (2006: 7.9%), at the lower end of official forecast of 7.5% - 8%.

Economists' forecast for 2008:
1Q08: 5% - 7.9%
2008: 5% - 7.3%
Polled fr HSBC, Std Chart, DBS, OCBC, UOB and Action Economics.

* MTI-GDP , CNA-GDP *

Taxation on Serviced Apartment Rental Income

The Income Tax Board of Review has ruled that rental income of a serviced apartment operator should be treated as normal recurrent business income and not as income fr property investments. Thus operators can claim deductions on expenses and capital allowances, which were previously not allowed by IRAS under Section10E.

Section 10E states that a business which makes investments, including the 'letting of immovable property', cannot claim deductions on expenses and capital allowances beyond the actual income for the year.

Serviced apartment operators were also not allowed to carry over their losses to the following year, which are generally allowed for ordinary businesses and for hotels.

IRAS has filed an appeal against the decision to the High Court.

* AsiaOne-SerApt *