China urban property prices fall less sharply in May

Source : Business Times – 10 Jun 2009

The average annual property price decline in Chinese cities was less sharp in May than in April, pointing to stabilisation in the market.

Property prices in 70 cities fell by 0.6 per cent in May from a year earlier compared with a drop of 1.1 per cent in the 12 months to April, the National Development and Reform Commission, the economic planning agency, said on Wednesday.

On a monthly basis, prices were up 0.6 per cent in May, compared with a rise of 0.4 per cent in April, the commission said on its website.

Annual real estate investment growth quickened to 6.8 per cent in the first five months, up from 4.9 per cent in the January-April period, the National Bureau of Statistics said, suggesting a significant pickup in capital spending in the sector in May.

Property investment is a major driver of China’s overall urban fixed-asset spending. Beijing last week lowered the requirement on registered capital for developers to start new projects, a move that helped boost market confidence.

The statistics office also said property sales nationwide increased by 25.5 per cent in the first five months, up from an annual growth of 17.5 in the first four months, sustaining an upward trend that started at the beginning of this year.

Tender for URA’s Woodlands plot closes on July 7

Source : Business Times – 10 Jun 2009

THE Urban Redevelopment Authority (URA) yesterday launched the tender for an industrial site at the corner of Woodlands Industrial Park E5 and Woodlands Avenue 4. The tender closes on July 7.

This follows URA’s May 26 announcement on the successful application for the site, which is on the government’s reserve list. The successful applicant, which has not been named, has undertaken to bid at least $12.5 million or $18.57 per square foot (psf) of potential gross floor area (GFA).

The 2.5 hectare plot is being offered on 60-year-leasehold tenure with a maximum 2.5 plot ratio, which means it can be built up to a GFA of 673,077 square feet. The maximum building height is 10 storeys. The site is zoned for Business 2 development, suitable for a range of uses such as clean/light industry, general industry and warehousing.

BT’s earlier story in late May quoted Colliers International director (industrial) Tan Boon Leong as saying that the plot is likely to draw a handful of bidders, with the top bids at around $20-23 psf per plot ratio (ppr).

The site is next to a plot sold at a state tender that closed in July last year (before Lehman’s collapse) to Soilbuild Group Holdings for $30.10 psf ppr.

Soilbuild is expected to launch for sale later this year a flatted factory and terrace factory project on the plot.